#1) When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance. this is particularly true of products that have a high value-to-weight ratio?
Answer: True. The value to weight ratio of a product is a measure of the monetary value a product has per kilogram or pound. This is an important measure used in supply chain design and strategy. A perfect example of different value to weight ratios is between diamonds and coal. A kilogram of coal is only worth a few cents, but one full kilogram of Diamonds can be worth tens of millions of dollars depending on the diamond grade. To determine which of the major forms of transportation should be used to transport both coal and Diamonds, its producers would use value to weight ratio economics to make their choice.
