Because costs for small shipments (under 500 pounds) are sharply higher than costs for full loads in railroad cars and trucks, firms share costs and services by consolidating shipments.

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This statement is true as it is generally more expensive to ship small shipments as opposed to larger and consolidated shipments. Therefore, firms often choose to share costs and services by consolidating their shipments.

Because Costs for Small Shipments (Under 500 Pounds) Are Sharply