Each passage below is followed by a question. Read the passage carefully and answer the question that follows.From a certain farming region, trucks can carry vegetables to markets in Pune in two days for a total cost of Rs 3000. A train will carry the vegetables there in four days for Rs 2000. If reducing time in transit is more important to the owner of the vegetables than is reducing the shipping bill, he or she will send the vegetables by truck.Which of the following is an assumption made in the passage above?Vegetables can be sold more profitably when shipped by train than by truck.Other than speed and cost, there are no significant differences between truck and train transportation from the farming region to Pune.The time required to ship vegetables by train from the farming region to Pune could be reduced to two days if the price for this service were raised.Most owners of vegetables in the region are more concerned with shipping costs than with the time involved in shipping vegetables to market.

Which of the following will increase the gross profit of the merchandising business?Group of answer choicesincrease in freight-inincrease in purchase discountdecrease in freight-outdecrease in purchase return

Cost and price minimization in transportation management primarily focuses on maximizing profits for transportation companies. (F)Question 42Answera.Falseb.True

Suppose that Company A's railroad cars pass through Farmer B's corn fields. The railroad causes an externality to the farmer because the railroad cars emit sparks that cause $1,500 in damage to the farmer's crops. There is a special soy-based grease that the railroad could purchase that would eliminate the damaging sparks. The grease costs $1,200. Suppose that the farmer has the right to compensation for any damage that his crops suffer. Assume that there are no transaction costs. Which of the following characterizes the efficient outcome?Group of answer choicesThe railroad will continue to operate but will pay the farmer $1,500 in damages.The railroad will purchase the grease for $1,200 and pay the farmer nothing because no crop damage will occur.The farmer will incur $1,500 in damages to his crops.The farmer will pay the railroad $1,200 to purchase the grease so that no crop damage will occur.

A potato farmer is operating in a perfectly competitive market. The current market rate for each kilogram of potato at ₹40. He currently produces 1000 kilograms of potatoes and sells the entire produce within a day. The cost of producing an additional kilogram would be ₹30, and this cost will increase as he produces more and more potatoes (because he will have to start planting on less fertile land, which is more costly). Which of the following actions should he take?He should hoard his potatoes to reduce the supply in the market.He should reduce the amount of potatoes he produces to reduce costs.He should increase the amount of potatoes he produces despite increasing costs.He should charge ₹30 per kilo.

If highways were restricted to cars and only those truck with capacity of less than 8 tons, most the truck traffic would be forced to run outside highway. Such a reduction in the amount of truck traffic would reduce the risk of collision in highway.**he conclusion drawn in the rst sentence depends on which of the following assumptions?**s?Choose the best optionClear ResponseThe roads outside highway would be as convenient as highway for most drivers of truck.Most roads outside highways are not ready to handle truck trafficMost trucks that are currently running in highway have a capacity of more than 8 tonsCars are at greater risk of becoming involved in collisions than are trucks.A reduction in the risk of collision would eventually lead to increases in car traffic.