Question 1

Under transportation regulation,the amount found in a Tariff as payment to a carrier for performing a given transport service is called a:

Accepted Answer

A)  price 
B)  rate 
C)  demand charge 
D)  supply charge 
A)  price 
B)  rate 
C)  demand charge 
D)  supply charge B

Question 2

What is a skimming price?

Accepted Answer

A)  a price meant to skim off the most profit able traffic 
B)  a means to maximize profit until competitors enter the market 
C)  a price which allows a carrier to enter a new market. 
D)  One that allows the carrier to transport only that traffic of the shipper that the carrier feels to be profitable. 
A)  a price meant to skim off the most profit able traffic 
B)  a means to maximize profit until competitors enter the market 
C)  a price which allows a carrier to enter a new market. 
D)  One that allows the carrier to transport only that traffic of the shipper that the carrier feels to be profitable. B

Question 3

How does one determine a class rate?

Accepted Answer

The procedure for determining a class rate for moving a specific commodity between two points is outlined in Figure 4.9.The first step is to determine the rate base points for the specific origin and destination from the groupings tariff.Next,from the rate basis number tariff,determine the rate basis number for the relevant rate basis points.The class rating for the particular commodity being shipped is found in the classification.Finally,the rate is found in the class rate tariff for the appropriate rate basis number and class rating.The shipping charge for moving a product between a specific origin and destination is determined by multiplying the class rate,which is in cents per hundredweight,by the total shipment weight in hundredweight.

Question 4

A profit-maximizing oriented carrier will not set a price in the long-run that would:

Accepted Answer

A)  reduce variable costs. 
B)  increase fixed costs. 
C)  increase customer satisfaction with services rendered. 
D)  prohibit the movement of freight or passengers. 
A)  reduce variable costs. 
B)  increase fixed costs. 
C)  increase customer satisfaction with services rendered. 
D)  prohibit the movement of freight or passengers.

Question 5

Three necessary conditions must be met before a seller can practice third-degree price discrimination.The conditions are: buyers must be separated into groups or submarkets according to their elasticities of demand,the seller must possess some degree of monopoly power,and

Accepted Answer

A)  the seller must prevent transfer of sales between the groups or submarkets. 
B)  the seller must have "market dominance". 
C)  the buyer must have profit maximization as a goal. 
D)  the buyer must have variable costs that have to be recovered. 
A)  the seller must prevent transfer of sales between the groups or submarkets. 
B)  the seller must have "market dominance". 
C)  the buyer must have profit maximization as a goal. 
D)  the buyer must have variable costs that have to be recovered.

Question 6

Which of the following is not a condition for pure competition?

Accepted Answer

A)  Large number of sellers 
B)  Sellers are small enough that no one can overly influence the market 
C)  Involves a heterogeneous product or service 
D)  Unrestricted entry 
A)  Large number of sellers 
B)  Sellers are small enough that no one can overly influence the market 
C)  Involves a heterogeneous product or service 
D)  Unrestricted entry

Question 7

Define third degree price discrimination and explain the two necessary conditions before it can be practiced? Does this practice fit any one mode more than any other?

Accepted Answer

Third-degree price discrimination is whe

Question 8

The firm is in a decreasing cost industry,and its prices are based upon strict marginal costs.The firm experiences a loss.In this case,for the firm to recover its fixed costs,it must use marginal cost as a floor for its prices,and:

Accepted Answer

A)  try to take business away from competing modes and carriers. 
B)  convince its customers to pay more for the services offered. 
C)  use the value of service to determine how high above marginal cost the price should be set. 
D)  ask the government to intervene so they can raise the minimum cost level. 
A)  try to take business away from competing modes and carriers. 
B)  convince its customers to pay more for the services offered. 
C)  use the value of service to determine how high above marginal cost the price should be set. 
D)  ask the government to intervene so they can raise the minimum cost level.

Question 9

Define and discuss Value of Service Pricing.

Accepted Answer

Value of service pricing is the pricing

Question 10

For the theory of contestable markets to work,four conditions have to be met: no barriers to market entry,no economies of scale present,consumer willingness to switch between carriers,and

Accepted Answer

A)  sellers and buyers of such small size that price or supply cannot be influenced. 
B)  existing carriers prevented from responding to new entrants' lower prices. 
C)  mutual interdependence between various sellers. 
D)  no one seller controls a significant portion of the market. 
A)  sellers and buyers of such small size that price or supply cannot be influenced. 
B)  existing carriers prevented from responding to new entrants' lower prices. 
C)  mutual interdependence between various sellers. 
D)  no one seller controls a significant portion of the market.

Question 11

There are two separate concepts in Cost of Service pricing.They are:

Accepted Answer

A)  head haul, back haul and extent of competition 
B)  commodity and density 
C)  prices based on average or marginal cost 
D)  competition and direction of travel 
A)  head haul, back haul and extent of competition 
B)  commodity and density 
C)  prices based on average or marginal cost 
D)  competition and direction of travel

Question 12

The main objective of deregulation in transportation was?

Accepted Answer

Create market-driven

Question 13

Which is correct regarding value-of-service pricing?

Accepted Answer

A)  the model is used to determine the lower limit of freight rates 
B)  the model considers the supply side of the transportation pricing function 
C)  the value of the product is considered to be irrelevant in the determination of the freight rate 
D)  the model considers the ability of the commodity to bear a charge 
A)  the model is used to determine the lower limit of freight rates 
B)  the model considers the supply side of the transportation pricing function 
C)  the value of the product is considered to be irrelevant in the determination of the freight rate 
D)  the model considers the ability of the commodity to bear a charge

Question 14

Price is a concept relating to how post-deregulation transportation firms determine and impose charges for their services.Which is a distinguishing feature of this concept of price?

Accepted Answer

A)  the amount found in a Tariff Book as payment to a carrier for performing a transport service 
B)  a lawful charge imposed by a carrier on a commodity movement 
C)  a value or level that is determined based on prevailing market forces 
D)  a charge determined primarily by considering a carrier's costs only 
A)  the amount found in a Tariff Book as payment to a carrier for performing a transport service 
B)  a lawful charge imposed by a carrier on a commodity movement 
C)  a value or level that is determined based on prevailing market forces 
D)  a charge determined primarily by considering a carrier's costs only

Question 15

The basic types of rates are class,exception and:

Accepted Answer

A)  Mileage 
B)  Commodity 
C)  Standard 
D)  Discount 
A)  Mileage 
B)  Commodity 
C)  Standard 
D)  Discount

Question 16

Distinguish between the terms "rate" and "price" as they relate to transportation?

Accepted Answer

A rate,appropriate to the regulation of

Question 17

What are the most common mistakes in carrier pricing?

Accepted Answer

As previously mentioned,carriers have no

Question 18

This type of rate applies to or from whole regions,rather than points within a region.

Accepted Answer

A)  joint rate 
B)  local rate 
C)  group rate 
D)  incentive rate 
A)  joint rate 
B)  local rate 
C)  group rate 
D)  incentive rate

Question 19

Define and discuss Cost of Service Pricing.

Accepted Answer

Cost of service pricing takes a marginal

Question 20

Define pricing objectives,and give 3 of the 7 types of pricing objectives listed in the book

Accepted Answer

Pricing objectives for a carrier should

Under transportation regulation,the amount found in a Tariff as payment to a carrier for performing a given transport service is called a:

What is a skimming price?

How does one determine a class rate?

A profit-maximizing oriented carrier will not set a price in the long-run that would:

Three necessary conditions must be met before a seller can practice third-degree price discrimination.The conditions are: buyers must be separated into groups or submarkets according to their elasticities of demand,the seller must possess some degree of monopoly power,and

Which of the following is not a condition for pure competition?

Define third degree price discrimination and explain the two necessary conditions before it can be practiced? Does this practice fit any one mode more than any other?

The firm is in a decreasing cost industry,and its prices are based upon strict marginal costs.The firm experiences a loss.In this case,for the firm to recover its fixed costs,it must use marginal cost as a floor for its prices,and:

Define and discuss Value of Service Pricing.

For the theory of contestable markets to work,four conditions have to be met: no barriers to market entry,no economies of scale present,consumer willingness to switch between carriers,and

There are two separate concepts in Cost of Service pricing.They are:

The main objective of deregulation in transportation was?

Which is correct regarding value-of-service pricing?

Price is a concept relating to how post-deregulation transportation firms determine and impose charges for their services.Which is a distinguishing feature of this concept of price?

The basic types of rates are class,exception and:

Distinguish between the terms "rate" and "price" as they relate to transportation?

What are the most common mistakes in carrier pricing?

This type of rate applies to or from whole regions,rather than points within a region.

Define and discuss Cost of Service Pricing.

Define pricing objectives,and give 3 of the 7 types of pricing objectives listed in the book

Global Supply Chains: The Role and Importance of Transportation

Transportation: The Critical Link in the Economy

Transportation Regulation and Public Policy

Motor Carriers

Railroads

Airlines

Water Carriers and Pipelines

Transportation Risk Management

Global Transportation Planning

Global Transportation Execution

Third Party Logistics

Private Transportation and Fleet Management

Issues and Challenges of Global Supply Chains

Filters

Exam 4: Costing and Pricing in Transportation

Under transportation regulation,the amount found in a Tariff as payment to a carrier for performing a given transport service is called a:

What is a skimming price?

How does one determine a class rate?

A profit-maximizing oriented carrier will not set a price in the long-run that would:

Three necessary conditions must be met before a seller can practice third-degree price discrimination.The conditions are: buyers must be separated into groups or submarkets according to their elasticities of demand,the seller must possess some degree of monopoly power,and

Which of the following is not a condition for pure competition?

Define third degree price discrimination and explain the two necessary conditions before it can be practiced? Does this practice fit any one mode more than any other?

The firm is in a decreasing cost industry,and its prices are based upon strict marginal costs.The firm experiences a loss.In this case,for the firm to recover its fixed costs,it must use marginal cost as a floor for its prices,and:

Define and discuss Value of Service Pricing.

For the theory of contestable markets to work,four conditions have to be met: no barriers to market entry,no economies of scale present,consumer willingness to switch between carriers,and

There are two separate concepts in Cost of Service pricing.They are:

The main objective of deregulation in transportation was?

Which is correct regarding value-of-service pricing?

Price is a concept relating to how post-deregulation transportation firms determine and impose charges for their services.Which is a distinguishing feature of this concept of price?

The basic types of rates are class,exception and:

Distinguish between the terms "rate" and "price" as they relate to transportation?

What are the most common mistakes in carrier pricing?

This type of rate applies to or from whole regions,rather than points within a region.

Define and discuss Cost of Service Pricing.

Define pricing objectives,and give 3 of the 7 types of pricing objectives listed in the book

Global Supply Chains: The Role and Importance of Transportation

Transportation: The Critical Link in the Economy

Transportation Regulation and Public Policy

Motor Carriers

Railroads

Airlines

Water Carriers and Pipelines

Transportation Risk Management

Global Transportation Planning

Global Transportation Execution

Third Party Logistics

Private Transportation and Fleet Management

Issues and Challenges of Global Supply Chains

Filters