The Federal Motor Carrier Safety Administration (FMCSA) along with state transportation agencies in 41 states (as of 2012) administer interstate trucking licenses through the United States Carrier Registration Agreement. However, the registration process is complex, time consuming, and expensive. There are many fees and costly regulations that a trucker or firm must meet to operate. For example, for a large truck, the annual federal interstate registration fee can exceed $8,000. These largely lump-sum costs-which are not related to the number of miles driven-have increased substantially in recent years. Instead of being collected annually, if the lump-sum costs are collected only once (when the firm starts operation), then O A. firms would no longer produce more because the fees would be fixed costs. O B. nothing changes because the fees would still be fixed costs. OC. the market price would decrease and the market quantity would increase because the fees would be variable costs. O D. remaining firms would produce less because the fees would be marginal costs. O E. firms would produce less because the fees would be fixed costs. Compared to no fees, if the lump-sum costs are collected annually, then the firm's long-run supply curve will if the lump sum costs are collected only once, then the long-run supply curve will
The Federal Motor Carrier Safety Administration (FMCSA) along with state transportation agencies in 41 states (as of 2012) administer interstate trucking licenses through the United States Carrier Registration Agreement. However, the registration process is complex, time consuming, and expensive. There are many fees and costly regulations that a trucker or firm must meet to operate. For example, for a large truck, the annual federal interstate registration fee can exceed $8,000. These largely lump-sum costs-which are not related to the number of miles driven-have increased substantially in recent years. Instead of being collected annually, if the lump-sum costs are collected only once (when the firm starts operation), then O A. firms would no longer produce more because the fees would be fixed costs. O B. nothing changes because the fees would still be fixed costs. OC. the market price would decrease and the market quantity would increase because the fees would be variable costs. O D. remaining firms would produce less because the fees would be marginal costs. O E. firms would produce less because the fees would be fixed costs. Compared to no fees, if the lump-sum costs are collected annually, then the firm's long-run supply curve will if the lump sum costs are collected only once, then the long-run supply curve will
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:The Federal Motor Carrier Safety Administration (FMCSA) along with state transportation agencies in 41 states (as of 2012) administer interstate trucking licenses through the United States Carrier Registration Agreement.
However, the registration process is complex, time consuming, and expensive. There are many fees and costly regulations that a trucker or firm must meet to operate. For example, for a large truck, the annual federal
interstate registration fee can exceed $8,000. These largely lump-sum costs-which are not related to the number of miles driven-have increased substantially in recent years.
Instead of being collected annually, if the lump-sum costs are collected only once (when the firm starts operation), then
O A. firms would no longer produce more because the fees would be fixed costs.
O B. nothing changes because the fees would still be fixed costs.
O C. the market price would decrease and the market quantity would increase because the fees would be variable costs.
O D. remaining firms would produce less because the fees would be marginal costs.
O E. firms would produce less because the fees would be fixed costs.
Compared to no fees, if the lump-sum costs are collected annually, then the firm's long-run supply curve will
if the lump sum costs are collected only once, then the long-run supply curve will
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education