Question: For a liner ship owner running container services between South Africa and Northern Europe to a published sailing schedule and with a given fleet of
For a liner ship owner running container services between South Africa and Northern Europe to a published sailing schedule and with a given fleet of vessels (so in a short-run situation), which of the cost elements you identified in 3(a) (or which proportions of the various items), could reasonably be seen as fixed costs in the short run, and which could be viewed as variable costs?Please provide a fuller and reasoned argument for each cost item you have identified. What, roughly, would you consider the overall extent or proportion of fixed for such a liner operator to be?
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