Fundamentals of Transportation Curves

• FT = Firm Transportation
  • Reservation = Fixed Cost
  • Commodity = Variable Cost

• IT = Interruptible Transportation
  • Commodity = Variable Cost

• FDQ = Firm Discount Quantity
  • Transport rates fully discounted down to the Lowest Level

• ZDQ = Zero Discount Quantity
  • Transport rates not discounted at all, at max rates

• NDQ = Negative Discount Quantity
  • Representing a premium over max rates

• NDQ Mult = Negative Discount Quantity Multiplier
  • Multiplier used with the max rate to determine the height of the hockey-stick portion of the transportation curve

G2M2® Case Spatial Equilibrium

G2M2® Case Spatial Equilibrium with Constrained Transportation

Transportation constraints raise prices in delivery areas and reduce prices in supply areas and lower both consumer and producer surplus.

Please contact customer support if you have any further questions - RBAC, Inc. support line (281) 506-0588 ext. 125, from 9:00 am to 5:00 pm CT