Logistics costs in developing countries often represents about what percentage of the total cost for any given gadget.

		8% to 10%
		20% to 30%
		40% to 50%
		60% to 70%
		70%+

Which of the following is NOT one of the three reasons for heavy railroad regulations during the Initiation Era?

	A.	Starting a railroad company comes with a relatively high startup costs, therefore not many entrepreneurs enter the market; thus, railroads have a tendency to monopolize.
	B.	Railroads were a threat to existing motor carriers mode of transportation, therefore government had to step in and introduce regulatory measures to level the playing field.
	C.	Railroad had the potential to unite the country, so government regulated the industry in hopes to stir it in the right direction and towards unification.
	D.	Since railroad mode of transportation was a new industry at that time, the government wanted to play it safe with more stringent regulations.

Consider two manufacturers of highly specialized high efficiency furnace. They purchased rights to the same patent, so their furnaces are identical. Their production costs, for all practical purposes, are the same at $400 per unit. One manufacturer is in Denver, Colorado while the other one is in Nashville, Tennessee. According to Google maps they are about 1150 miles apart. The Denver manufacturer is using a local 3PL company, called Rocky Roads Ahead, who promised them $40/unit/mile transportation cost with all logistics related services included. Nashville manufacturer knows it all, so they thought they would be better off running their logistics solution in-house. Once all was set and done, their transportation cost came down to $50/unit/mile. Since they are the only two manufacturers holding the patent in the US, they want to understand extend of the market each can serve and still be competitive against the other manufacturers pricing. They asked your consulting company to run the numbers for them and figure out the reach of your market as opposed to the market of your competitor.

		Nashville manufacturer can be competitive up to 463 miles westwards.
		Nashville manufacturer can be competitive up to 492 miles westwards.
		Nashville manufacturer can be competitive up to 511 miles westwards.
		Nashville manufacturer can be competitive up to 534 miles westwards.
		Nashville manufacturer can be competitive up to 603 miles westwards.