For every dollar spent on food, how much of that dollar goes towards transportation costs?

The correct choice indicates that for every dollar spent on food, approximately 3.5 cents is allocated towards transportation costs. This figure reflects the reality of the food supply chain, where a significant portion of consumer spending goes towards production, processing, and retailing of food, but transportation represents a smaller, yet essential, component of the overall costs.

Transportation costs account for a portion of the expenses incurred from getting food products from farms to consumers' tables. This encompasses the logistics involved in moving goods, which may include fuel, labor, vehicle maintenance, and other associated costs. While transportation is a critical factor in the supply chain, it is not as substantial as production factors, which include labor and materials.

Ultimately, recognizing the proportion of spending allocated to transportation helps industry stakeholders, including producers, suppliers, and consumers, understand the economics of food pricing and the factors that influence food accessibility and affordability.