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Why do customers want to ship as much of their minerals as possible on a truck?

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User Ebbs
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1 Answer

4 votes

Final answer:

Customers want to ship as much of their minerals as possible on a truck to maximize profits by saving on shipping costs and taking advantage of economies of scale.

Step-by-step explanation:

Customers aim to ship as much of their minerals as possible on a truck to maximize profits. Shipping large quantities at once is cost-effective because it reduces the frequency of trips, thereby saving on fuel and labor costs, and potentially results in lower rates due to economies of scale. Shipping over congested street networks and jammed freeways increases costs and reduces profits, so maximizing each shipment's volume is essential. Furthermore, having access to efficient transport options, such as locations near uncrowded freeways or where rail or water transport is available, can further enhance cost-effectiveness.

answered
User Subhendu Kundu
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8.4k points

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