Carrier Price Service Quality Rating A $103.90 95 B $98.50 91 $127.20 98 D $111.40 94
Four regional less-than-truckload (LTL) carriers handle shipments traveling from Lexington, Kentucky, to Springfield, Illinois. All four companies say that their normal
service time to deliver these shipments is two business days. The four carriers compete
with each other on the basis of price and service quality rating, as shown in the following table. The price reported in the table is the (nondiscounted) cost per hundredweight
(cwt) of sending a 600-pound shipment from Lexington to Springfield at freight class
70. The service quality rating measures a carrier’s loss and damage record and goes
from 0 (poor quality) to 100 (high quality). Which of these LTL carriers are on the efficient frontier?
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