Transportation creates economic utility. Utility can be attributed to usefulness or satisfaction. Therefore transportation creates place utility because goods present in a place where they are not needed have less or no value. Transportation helps when it come to pricing and market decisions. With the ability to create place and time utility, the availability of transportation has an effect on final decisions made by any firm. It helps in product and market area decisions. This is seen when a firm is making decisions on what product to purchase and the place to find the product. Transportation is also considered when it comes to purchasing, location and pricing decisions in general. Transportation therefore has a big place in any economic system because it enables businesses to acquire goods which are not manufactured at their location at the same time allowing consumers to access goods which are manufacture miles away from their immediate locale.
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