3. The Economics of Transportation

Transportation economics occupies its own branch of the economics discipline. Economics is concerned with determining the best means of allocating scarce resources to achieve the greatest overall benefit. Governments use economics to determine projects in which they should invest, such as those of transportation infrastructure (for roadways, bridges, ports, locks and dams, among others). Businesses also must use economic principles to make the most informed and educated decisions in resource allocation. On matters of transportation, these decisions include determining how many facilities in which to operate for serving customers (distribution network design), whether to invest in private fleet operations or ...

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