8. In 1968, Keeler (1971) identified the per seat-mile costs (shown in table 5.14) associated with...

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8. In 1968, Keeler (1971) identified the per seat-mile costs (shown in table 5.14) associated with four major intercity modes of travel: rail, air, automobile, and intercity bus. Table 5.14 Intercity modal costs, 1968 Mode Intercity Bus (200-mile trip) Air (Lockheed 1,011, 256-seat configuration, 250-mile trip) Automobile (two occupants) Rail (three-car train seating 240 passengers) Cost Per Seat-Mile (cents) 1.44 3.00 4.5 1.5 Source: Reprinted from Keeler (1971), table 7, p. 160, with the permission of The University of Chicago Press. Copyright 1971 by The University of Chicago. All rights reserved a. What does this table tell us about the cost competitiveness of rail in comparison with the other three intercity modes? b. Consider the following sets of statistics for 1990: Intercity modal costs Mode Per-Mile Cost Average Length of Trip Certificated Air Carrier 13.02 803 Rail 12.85 274 Intercity Bus 11.55 141 Automobile 13.33* 115* * Per mile costs of operating vehicle occupant: assumes 1.62 occupants per vehicle in 1990. Average Length of Trip for automobile is based upon intercity vacation trips. Based upon this information, can you conclude that rail trips are competitive with air trips? How about intercity bus and automobile trips? Use the concept of economies of distance to argue that rail trips will be more competitive with shorter-haul air trips, but will be less competitive with longer-haul intercity bus and auto trips. 8. In 1968, Keeler (1971) identified the per seat-mile costs (shown in table 5.14) associated with four major intercity modes of travel: rail, air, automobile, and intercity bus. Table 5.14 Intercity modal costs, 1968 Mode Intercity Bus (200-mile trip) Air (Lockheed 1,011, 256-seat configuration, 250-mile trip) Automobile (two occupants) Rail (three-car train seating 240 passengers) Cost Per Seat-Mile (cents) 1.44 3.00 4.5 1.5 Source: Reprinted from Keeler (1971), table 7, p. 160, with the permission of The University of Chicago Press. Copyright 1971 by The University of Chicago. All rights reserved a. What does this table tell us about the cost competitiveness of rail in comparison with the other three intercity modes? b. Consider the following sets of statistics for 1990: Intercity modal costs Mode Per-Mile Cost Average Length of Trip Certificated Air Carrier 13.02 803 Rail 12.85 274 Intercity Bus 11.55 141 Automobile 13.33* 115* * Per mile costs of operating vehicle occupant: assumes 1.62 occupants per vehicle in 1990. Average Length of Trip for automobile is based upon intercity vacation trips. Based upon this information, can you conclude that rail trips are competitive with air trips? How about intercity bus and automobile trips? Use the concept of economies of distance to argue that rail trips will be more competitive with shorter-haul air trips, but will be less competitive with longer-haul intercity bus and auto trips.

Answer rating: 100% (QA)

a The table from 1968 shows the cost per seatmile for four intercity modes of travel intercity bus air automobile and rail Based on the provided data ... View the full answer