Transporte Rpido entered the Spanish trucking industry as a discount carrier in the 1980s. When it entered the business, it chose to focus on moving industrial goods between Valencia and Sevilla. The company acquired five trucks that it planned to operate on this route. Each truck could carry 48 pallets of material. Even if a truck carried no freight on a particular trip between the two cities, Transporte Rpido expected the cost of operating that truck to equal 5,000 euros (for things such as fuel, maintenance, the driver's salary, etc.). For every pallet of goods on the truck, the costs for that trip rose by 40 Euros (for things such as handling, data entry, etc.). Transporte Rpido hoped to offer an introductory price of 200 Euros per pallet to industrial customers.

• What percentage of the available pallet spaces did the company need to fill for a truck to break even on a particular trip?

• Should Transport Rapide expect intense price rivalry in this market? Why or why not?