List the different modes of transporting goods in the United States and their comparative advantages
What will be an ideal response?
Answer: As a general rule, the farther something is transported, the lower is the cost per mile. Longer distance transportation is cheaper per mile in part because firms must pay workers to load goods on and off vehicles, whether the material travels 10 miles or 10,000. The cost per mile decreases at different rates for each of the four modes, because the loading and unloading expenses differ for each mode.
Airplanes are normally the most expensive alternative, so they are usually reserved for speedy delivery of small-bulk, high-value packages.
Ships are attractive for very long distances because the cost per mile is very low.
Trains are often used to ship to destinations that take longer than one day to reach. Trains take longer than trucks to load, but are not required to make daily rest stops like truck drivers.
Trucks are most often used for short-distance delivery because they can be loaded and unloaded quickly and cheaply.
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