solution
Assume that a private truckload carrier moves a shipment from point A to point B with a total cost of $200. Which of the following statement(s) is/are correct for the set price(s) between these two points based on the cost-of-service and value-of- service criteria? Statement (1): The carrier should charge any price greater than $200 based on the cost-of-service criterion. Statement (2): The carrier should charge any price greater than $200 based on the value-of-service criterion. Statement (3): Pricing based on the value of service criterion depends on the demand and supply of the market between points A and B Statement (4): Pricing based on the cost of service criterion depends on the demand and supply of the market between points A and B Both Statement (1) and Statement (3) are are correct.