Question

The farther something is transported, the ______ the cost per km. This is largely because firms must __________________ whether the material travels 10 or 1000 kilometers.

A. Higher, adjust pricing
B. Lower, workers to load goods
C. Constant, increase profit margins
D. Fluctuating, spread fixed costs

Answer 1

The farther something is transported, the lower the cost per km. This is largely because firms must adjust pricing whether the material travels 10 or 1000 kilometers.

Step-by-step explanation:

The farther something is transported, the lower the cost per km. This is largely because firms must adjust pricing whether the material travels 10 or 1000 kilometers.

For example, take a messenger company that delivers packages around a city. If the company needs to transport packages to a farther distance, they would need to adjust their pricing in order to cover the additional costs of transportation. This is because the cost per km increases as the distance to be transported increases.