following the trail of the series of discussion, i would like to put forward my theory.
If we pick up the jist of the entire passage and sum it up, won't it be like -
" ostronia railways have survived just becuase of the subsidies provided by the govt. If it was not for the subsidies, the railroads network would have collapsed becuase of the heavy competition faced from the roadways"
..the main line to look here is "..But because of government subsidies that have permitted Ostronian railroad companies to operate even while incurring substantial losses...
this clearly spells out the above jist of the passage.
now if we look at the passage-
In the past, the railroads in Ostronia were run as regional monopolies and operated with little regard for what customers wanted. In recent years, with improvements to the Ostronian national highway network, the railroad companies have faced heavy competition from long-distance trucking companies. But because of government subsidies that have permitted Ostronian railroad companies to operate even while incurring substantial losses, the companies continue to disregard customersâ€™ needs and desires.
If the statements above are true, which one of the following must also be true on the basis of them?
(A) If the government of Ostronia ceases to subsidize railroad companies, few of those companies will continue to operate.---correct ( coz that's the entire summary of the passage. remember, here, we are saying 'few' and not all)
(B) Few companies in Ostronia that have received subsidies from the government have taken the needs and desires of their customers into account. ---strong but incorrect ( we are not sure whether these industries have a better competition or are they running just because of monoply in the market)
(C) Without government subsidies, railroad companies in Ostronia would have to increase the prices they charge their customers. --irrelevant
(D) The transportation system in Ostronia is no more efficient today than it was in the past. --irrelevant(who cares)
(E) In recent years, some companies in Ostronia that have had little regard for the desires of their customers have nonetheless survived. --incorrect ( again reffering to the explaination given in point 2. We are not sure which are these industries, or do they have any threat agains their monoply)
...let me know if someone has any doubts or counter for my explaination
Appreciation in KUDOS please!
Knewton Free Test 10/03 - 710 (49/37)
Princeton Free Test 10/08 - 610 (44/31)
Kaplan Test 1- 10/10 - 630
Veritas Prep- 10/11 - 630 (42/37)
MGMAT 1 - 10/12 - 680 (45/34)