Final answer:
Low cost transportation facilitates mass distribution by reducing the expenses of moving goods, leading to increased profits and enablement of wider service areas for businesses like messenger companies.
Step-by-step explanation:
Low cost transportation often leads to mass distribution because it enables companies to transport goods more efficiently and at a lower cost.
When shipping finished goods, minimizing the expenses related to congested street networks and jammed freeways is crucial because these conditions can significantly increase costs and reduce profits. Optimal locations for factories are those near uncrowded freeways or with access to rail or water transport, as these options can be more cost-effective.
For instance, a messenger company that relies heavily on gasoline for deliveries would benefit from a drop in gasoline prices. This cost reduction would allow the company to provide services more cheaply, potentially leading to higher profits and an expanded servicing area.
As a practical example, if a messenger company finds that the price of gasoline falls, it can consequently deliver packages at a lower cost.
Due to the relationship between lower costs and higher profits, the company may then increase its service offerings and expand its service area. This expansion represents an increase in supply, attributable to the more affordable transportation costs.