Chrysler's 1946 Chrysler Owners Manual PDF

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Examples are sea and air ports and railway track, especially the tube railways. Variable costs depend upon the level of output. Drivers in the road freight and passenger sectors, aircraft and ship’s crews are obvious examples, but maintenance of track and terminals can vary in their staff requirements according to the needs of traffic, and so can the need for booking clerks and check-in staff at airports. What is fixed and what is variable depends also upon the length of time involved; in the long run more costs are variable and fewer 14 The Economic Issues are fixed.

This is extremely difficult to justify, and in recent years many examples of this kind of intervention have been repealed or abandoned. At one time many city councils limited the number of taxicab licences that they would issue, providing a form of monopoly, and when the restriction was removed (leaving only quality control in place) there were strong protests on the part of cab drivers, who would probably have preferred to see such limits applied to the hire car business. We have already noted (see the box on page 33) the consequences of route licensing for the bus and coach industry, which was introduced after representations to a Royal Commission on Transport by the area agreement and municipal operators, who wanted protection from smaller competitors.

While we might expect to find that in any business there is good reason to maintain the equipment in safe working order, and to employ adequately trained staff, the risk of firms taking short cuts, Allocative Efficiency 35 not least when faced with financial problems, means that intervention is needed. This is to protect three classes of people: passengers (in the passenger carrying business), operating staff, and third parties. In the case of freight transport it is for the shipper to assess the risk of loss or damage to goods, but danger to staff and third parties (anyone who may become involved in an accident, for example) applies to all modes of transport, including its infrastructure.

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