Question

Consider a dairy farmer. As the price of butter falls, the break-even
distance for shipping butter:

remains unchanged.

rises.

falls.

Answer 1

Answer:

Rises

Explanation:

Answer 2

As price of the butter falls, the break-even distance for shipping the butter will remain unchanged.

Break-even distance refers to the distance at which expenses of intermodal transport equal the expenses of truck-only transport.

• The break-even distance helps to evaluate the economic feasibility of the intermodal freight system.

Now, if the cost of transported butter falls, then, the break-even distance for shipping butter will remain unchanged because the price does not affect the product mass nor the transport distance.

Therefore, the Option A is correct.

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