Small truckload carriers that have less than 20 or 30 trucks are able to compete with truckload carriers that have much larger fleets (more than 500 trucks).

1) Draw and explain an appropriate economic model(s) that illustrate(s) the cost structure of the truckload market that permits carriers with small fleets to compete with large fleet owners.

2)In your discussion of the economic model(s), explain why other transportation markets does not exhibit the same degree of competition.