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Question 205

Which of the following modes of transportation requires the lowest fixed investment?

    Correct Answer: C

    Trucking generally requires the lowest fixed investment compared to other modes of transportation like rail, air, or water. Trucks do not require extensive infrastructure beyond existing roads, which are typically funded and maintained by the government. In contrast, rail and air transport necessitate significant investment in specialized tracks or airstrips and terminals, while water transport requires ports and shipping facilities.

Discussion
piotrusl

In Module 3 - several times mentioned that Road Transport has the lowest capital investment

igrdOption: C

agree 100% C

duckula88Option: C

Truck request to build road or highway system thats very expensive.

duckula88Option: D

Water transportation, such as shipping via ocean vessels or inland waterways, generally involves lower fixed investment compared to other modes like rail, air, or trucking. This is because water transport infrastructure, such as ports and waterways, often requires less initial investment and maintenance costs.For example, if one transport ship can carry 5000 containers, you might need to purchase 5000 trucks for the same carrying capacity.

Rajiv8047Option: C

Trucking generally requires a lower fixed investment compared to other modes of transportation like rail, air, or water