1. Railroads no longer dominate the freight transportation market but they still lead the market in terms of freight ton-miles. What factors contribute to their leadership in this area? Why is their share of the total expenditures for freight movement so small if they lead in freight ton-miles?
2. The railroad industry's cost structure is different than that of the motor carrier industry. What factors contribute to this difference? What impact do these differences have for the railroads in terms of pricing, competitiveness, and investment?
3. What is the major advantage of air carriers? How does this advantage impact the inventory levels of those firms using air transportation? Explain how this advantage relates to the choice of modes when choosing between air carriage and other modes for freight and passengers.
4. What is the role of government in air transportation? Include both economic and safety in your answer.
5. The integrated ownership of pipelines was initially used by some oil companies to gain control of oil-producing area. How did they use their market power to gain market control? What other reasons can be offered for integrated ownership? Are these reasons valid in today's business environment?