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What does Lardner's Law suggest? Lowering transportation cost has a linear impact on market share. Transportation capacity cost decreases with economies of scale of the
What does Lardner's Law suggest? Lowering transportation cost has a linear impact on market share. Transportation capacity cost decreases with economies of scale of the transportation operations. Decreasing transportation cost by half results in approximately four times the market share served. As logistics gets more expensive, derived demand for transportation exponentially decreases. Contrary to popular belief, Lardner mathematically proved that economies of scale do not play a significant role in the transportation industry
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