Question

Due to better transportation facilities, consumers avail goods at a lesser price.

Which of the following best explains the reason behind price reduction?

• A. Helps in transporting goods to distant locations
• B. Helps in reducing the transportation cost of goods
• C. Helps in increasing production
• D. Helps in increasing mobility of human resources

Answer 1

The correct option is B Helps in reducing the transportation cost of goods

The transportation facility has helped businesses in many ways. The most significant is the increased mobility and faster transportation of goods. Bulk transportation of goods helps in reducing the transportation cost. As a result, the cost of production and the market price remain low.