How is the cost structure of the motor carrier industry affected by infrastructu
ID: 423431 • Letter: H
Question
How is the cost structure of the motor carrier industry affected by infrastructure? How have fuel and labor impacted motor carrier cost structures?What are some of the major issues facing motor carriers in the 21st century? Select one and discuss how it should be addressed?
What factors contribute to the differences in cost structure between the motor carrier industry and railroad industry? What is the impact for the railroad in terms of pricing, competitiveness, and investment?
What are the major current issues facing the railroad industry? Select one and discuss how it should be addressed How is the cost structure of the motor carrier industry affected by infrastructure? How have fuel and labor impacted motor carrier cost structures?
What are some of the major issues facing motor carriers in the 21st century? Select one and discuss how it should be addressed?
What factors contribute to the differences in cost structure between the motor carrier industry and railroad industry? What is the impact for the railroad in terms of pricing, competitiveness, and investment?
What are the major current issues facing the railroad industry? Select one and discuss how it should be addressed How is the cost structure of the motor carrier industry affected by infrastructure? How have fuel and labor impacted motor carrier cost structures?
What are some of the major issues facing motor carriers in the 21st century? Select one and discuss how it should be addressed?
What factors contribute to the differences in cost structure between the motor carrier industry and railroad industry? What is the impact for the railroad in terms of pricing, competitiveness, and investment?
What are the major current issues facing the railroad industry? Select one and discuss how it should be addressed
Explanation / Answer
Answer:1
Cost Structure of Motor Carrier Industry: the cost structure of the motor carrier industry is expense the company makes in making the product or delivering the service to the customers. Thus the cost model contain the cost as
· Transportation Cost
· Operating Cost
· Fixed Cost
· Variable Cost
Cost structure of the Motor carrier Industry affected by infrastructure as below
· Infrastructure improvement generates the demand for better services from the motor carrier industries and which impacted the cost elements, as the improvement in services starts with the increase of expenses and finally it is the cost which makes the differences.
· Infrastructure calls for better equipments/speedy service: This also impacted on high cost to the motor carrier industries because they need to purchase costly vehicles for providing the speedy services to their customers, due to better infrastructure.
· High competition in better services: The improved infrastructure develops high competition between the industry players, as they want to capture larger market requirements with providing better services suiting to the improved infrastructures.
· Infrastructure impacts the operating cost, transportation cost and variable cost as well, because if infrastructure is not good, then the services will be of low cost, but if infrastructure is of good quality, then the cost of services will be high to the motor carrier industries.
Fuel and Labor have highly affected the motor carrier industry because the labor is very costly and the cost of labor is increasing day by day, thus the cost of motor carrier industry is increasing due to labor cost increases, which impacts the fixed cost, variable cost, operating cost. The other critical element is fuel cost. The fuel cost is increased highly and is affecting the transportation cost for the motor carrier industry. The cost of fuel directly impacts the cost of motor carrier industry because the fuel cost is a big element and it is a huge cost for the industries. The small increase in fuel cost impacts highly the cost of the motor carrier industries.
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