Which of the following modes of transportation is characterized as having the highest fixed cost and lowest variable cost?
Which of the following modes of transportation is characterized as having the highest fixed cost and lowest variable cost?
Rail transportation is characterized by having the highest fixed costs due to the construction and maintenance of railway infrastructure and the acquisition of trains. At the same time, it has low variable costs, as the cost per unit of distance decreases significantly with higher usage.
Pipeline
Rail has highest fixed cost and low variable cost