Question 1

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 2

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 3

How does one determine a class rate?

Accepted Answer

The procedure for determining a class ra

Question 4

Discuss establishing carrier pricing objectives and identify the areas in which objectives can be set.

Accepted Answer

Carrier pricing decisions are grouped in

Question 5

How is the Relevant Market Structure in transportation described?

Accepted Answer

A)  by comparing fixed costs with variable costs 
B)  by determining all the areas which the carrier can serve effectively 
C)  by generally describing all possible origin and destination points for each commodity 
D)  by identifying the relevant market area for one commodity moving between two points 
A)  by comparing fixed costs with variable costs 
B)  by determining all the areas which the carrier can serve effectively 
C)  by generally describing all possible origin and destination points for each commodity 
D)  by identifying the relevant market area for one commodity moving between two points

Question 6

What is the difference between pure competition and monopolistic competition?

Accepted Answer

A)  minimal, as the conditions for each are quite similar. 
B)  under pure competition there are many sellers and the product is homogeneous 
C)  while there are many sellers, there is some differentiation in the product 
D)  not as great as there are with an oligopoly 
A)  minimal, as the conditions for each are quite similar. 
B)  under pure competition there are many sellers and the product is homogeneous 
C)  while there are many sellers, there is some differentiation in the product 
D)  not as great as there are with an oligopoly

Question 7

What is meant by stowability and handling?

Accepted Answer

Stowability and handling refle

Question 8

Define and discuss Value of Service Pricing.

Accepted Answer

Value of service pricing is the pricing

Question 9

There are several types of special rates. Choose any five and define.

Accepted Answer

Another pricing system is based on milea

Question 10

What are the most common mistakes in carrier pricing?

Accepted Answer

As previously mentioned, carriers have n

Question 11

Commodity rates are also referred to as:

Accepted Answer

A)  Freight all kinds rates 
B)  Aggregate tender rates 
C)  Loading allowances 
D)  Price indices 
A)  Freight all kinds rates 
B)  Aggregate tender rates 
C)  Loading allowances 
D)  Price indices

Question 12

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 13

Value of service pricing is also called:

Accepted Answer

A)  charging a rate which includes a high profit 
B)  charging what the traffic will bear 
C)  charging a price which favors one mode over another 
D)  charging a rate that has shown that shippers will use it to move their traffic 
A)  charging a rate which includes a high profit 
B)  charging what the traffic will bear 
C)  charging a price which favors one mode over another 
D)  charging a rate that has shown that shippers will use it to move their traffic

Question 14

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.

Question 15

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

Question 16

Third degree price discrimination is defined as:

Accepted Answer

A)  While rarely prosecuted, it is illegal and a misdemeanor versus a felony as defined by the Surface Transportation Board Act 
B)  charging different prices to different buyers who use the same commodity or service 
C)  permissible only when the buyer has requested rebates 
D)  the least serious type of discrimination as versus first degree 
A)  While rarely prosecuted, it is illegal and a misdemeanor versus a felony as defined by the Surface Transportation Board Act 
B)  charging different prices to different buyers who use the same commodity or service 
C)  permissible only when the buyer has requested rebates 
D)  the least serious type of discrimination as versus first degree

Question 17

The type of cost created from a situation where the production of one service necessarily entails the production of another service is known as a:

Accepted Answer

A)  separable unique cost. 
B)  common cost. 
C)  fixed universal cost. 
D)  variable general cost. 
A)  separable unique cost. 
B)  common cost. 
C)  fixed universal cost. 
D)  variable general cost.

Question 18

Describe the three categories of the major pricing decisions made by carriers.

Accepted Answer

First, a decision must be made when sett

Question 19

Please explain social responsibility pricing.

Accepted Answer

Social responsibility pricing forgoes sa

Question 20

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

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

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

How does one determine a class rate?

Discuss establishing carrier pricing objectives and identify the areas in which objectives can be set.

How is the Relevant Market Structure in transportation described?

What is the difference between pure competition and monopolistic competition?

What is meant by stowability and handling?

Define and discuss Value of Service Pricing.

There are several types of special rates. Choose any five and define.

What are the most common mistakes in carrier pricing?

Commodity rates are also referred to as:

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

Value of service pricing is also called:

What is a skimming price?

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

Third degree price discrimination is defined as:

The type of cost created from a situation where the production of one service necessarily entails the production of another service is known as a:

Describe the three categories of the major pricing decisions made by carriers.

Please explain social responsibility pricing.

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

Global Supply Chains the Role and Importance of Transportation

Transportation and the Economy

Transportation Technology and Systems

Motor Carriers

Railroads

Airlines

Water Carriers and Pipelines

Third Party Logistics

Transportation Risk Management

Global Transportation Management

Governmental Roles in Transportation

Issues and Challenges for Global Supply Chains

Filters

Exam 4: Costing and Pricing for Transportation

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

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

How does one determine a class rate?

Discuss establishing carrier pricing objectives and identify the areas in which objectives can be set.

How is the Relevant Market Structure in transportation described?

What is the difference between pure competition and monopolistic competition?

What is meant by stowability and handling?

Define and discuss Value of Service Pricing.

There are several types of special rates. Choose any five and define.

What are the most common mistakes in carrier pricing?

Commodity rates are also referred to as:

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

Value of service pricing is also called:

What is a skimming price?

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

Third degree price discrimination is defined as:

The type of cost created from a situation where the production of one service necessarily entails the production of another service is known as a:

Describe the three categories of the major pricing decisions made by carriers.

Please explain social responsibility pricing.

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

Global Supply Chains the Role and Importance of Transportation

Transportation and the Economy

Transportation Technology and Systems

Motor Carriers

Railroads

Airlines

Water Carriers and Pipelines

Third Party Logistics

Transportation Risk Management

Global Transportation Management

Governmental Roles in Transportation

Issues and Challenges for Global Supply Chains

Filters