Transportation Economies of Scale Boost Profits and Market Expansion.
The article discusses how transportation companies can save money by getting bigger. By spreading out their costs over more trips or passengers, they can lower the cost of each trip. This is called economies of scale. The article explains that as transportation companies grow, their costs don't increase as fast as their income, making them more profitable. It also shows that bigger companies can offer lower prices and attract more customers. This can lead to more cooperation between transportation companies, like merging together to become even bigger.