Who do cities exist? - Transport cost

7 important questions on Who do cities exist? - Transport cost

What are terminal costs?

Costs regardless shipping distance. These are the costs of loading the shipment onto the train/truck

Shipping costs consist of 2 components:

  1. Terminal costs
  2. Variable costs

Transport costs= c + bk. What are avg costs? (distance is k)

c/k + b
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

If input costs>output costs where to locate your factory?

Near the mine

2 sorts of location choices:

  1. Resource orientated (weight losing production)
  2. Market orientated (weight gaining production)

Resource orientated characterics:

  • Perishable inputs (milk, wine)
  • Volume losing (cotton baling)
  • Weight losing (furniture)
  • Fragile/hazardous (giftig)

Market orientated characteristics

  • Weight gaining (beer)
  • Perishable outputs (bread)
  • Volume gaining (auto assembly)
  • Hazardous outputs (weapons)

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo