In the United States, the Postal Service has a monopoly on first-class

Not sure why to eliminate E, as there is no issue to the business of Electronic transmittal operators if e Postal Service do not get a monopoly on electronic transmission.

I don't quite understand your reasoning for option E...

Our goal is to infer which question can be answered with the information provided in the passage... It is nowhere mentioned in the passage whether the Postal Service will have a monopoly or not...

Got the point buddy, I was looking for knowing what will help to solve issue. Thanks !!

Since it clearly says that if Postal Service were to offer electronic transmission, it would have an unfair advantage, since its electronic transmission service could be subsidized from the profits of the monopoly.


So this implies that postal service makes profit on first class mail, and at the expense of the profits of monopoly, could finance the electronic transmition service.


hence C ­

A is afraid that B subsidizes business line C with profits from business line D.

For this chain to work it is paramount that A thinks B is making a profit in business line D.

Hope this helps in terms of breaking it down.

Regards,
Chris

In the United States, the Postal Service has a monopoly on first-class mail, but much of what is sent first class could be transmitted electronically. Electronic transmittal operators argue that if the Postal Service were to offer electronic transmission, it would have an unfair advantage, since its electronic transmission service could be subsidized from the profits of the monopoly.

Which of the following questions can be answered on the basis of the information in the passage above?
Type- inference

(A) Is the Postal Service as efficient as privately owned electric transmission services? - Incorrect - efficiency isn't discussed

(B) If private operators were allowed to operate first-class mail services, would they choose to do so? - Incorrect

(C) Do the electronic transmittal operators believe that the Postal Service makes a profit on first-class mail? - Correct - Because Electronic transmittal operators believe that if the Postal Service were to offer electronic transmission, it would have an unfair advantage, since its electronic transmission service could be subsidized from the profits of the monopoly.

(D) Is the Postal Service prohibited from offering electronic transmission services? - Incorrect - nothing about prohibition is mentioned

(E) Is the Postal Service expected to have a monopoly on electronic transmission? - Incorrect - Postal Service has a monopoly on first-class mail

Answer C

This is really a nice question. In the prompt it is already saying that the electronically transmitted first mail can be subsidized from the monopoly on first class mail. So definitely electronic operators do believe that postal services make profit on the first class mail

However En is really a trap !

(A) Is the Postal Service as efficient as privately owned electric transmission services? - We don't know anything abt the efficiency of private electric transmission. Incorrect

(B) If private operators were allowed to operate first-class mail services, would they choose to do so?

The passage doesn't provide any info on private entry into first class mail service. Quite opposite it talks of entry of postal service into eletronic transmission. Incorrect.

(C) Do the electronic transmittal operators believe that the Postal Service makes a profit on first-class mail?

The passage talks of private players being apprehensive of postal service subsiding electronic transfer with profits from it's monopoly (first class mail) biz. Therefore, the question in Option C is answered by the passage. Correct.

(D) Is the Postal Service prohibited from offering electronic transmission services?

Nothing in passage talks of whether the postal service is prohibited from offering electronic transmission services. Incorrect.

(E) Is the Postal Service expected to have a monopoly on electronic transmission?

The passage talks of unfair advantage to postal service but doesn't provide info on whether postal service will be expected to have a monopoly. It may well be possible for private players to also compete. The monopoly will occur when private players will be driven and that is too far fetched an assumption given what is provided in the passage.

Posted from my mobile device

I was confused with question stem. It took me a while to understand whether it is assumption question or inference question

In the United States, the Postal Service has a monopoly on first-class mail, but much of what is sent first class could be transmitted electronically. Electronic transmittal operators argue that if the Postal Service were to offer electronic transmission, it would have an unfair advantage, since its electronic transmission service could be subsidized from the profits of the monopoly.

Which of the following questions can be answered on the basis of the information in the passage above?


(A) Is the Postal Service as efficient as privately owned electric transmission services?
Can it be Yes or NO?
answer: Don't know

(B) If private operators were allowed to operate first-class mail services, would they choose to do so?
Answer- maybe, maybe NO

(C) Do the electronic transmittal operators believe that the Postal Service makes a profit on first-class mail?
Oh Yes! that's why operators saud that they would have an unfair advantage because of profits from first class mail
if the Postal Service were to offer electronic transmission, it would have an unfair advantage, since its electronic transmission service could be subsidized from the profits of the monopoly.

(D) Is the Postal Service prohibited from offering electronic transmission services?
Answer= maybe but also possible they may not be interested or they may not have resources

(E) Is the Postal Service expected to have a monopoly on electronic transmission?
answer= why monopoly? monopoly on one business by one company not necessary to have a monopoly on other business. But it is also possible that in long term it would have monopoly? I am not sure

C is better option

Hi,

In the stimulus, it is already written that "it (the Postal Service) would have an unfair advantage". Isn't this statement the same as saying that "Postal Service expected to have a monopoly on electronic transmission" as mentioned in Option E?

Hey aarkay87, an unfair advantage of being able to offer a low price does not automatically translate into a monopoly. It might be able to do so but it is definitely not the same. Several companies offer a lower price than their competitors, but that does not result in a monopoly as price is just one of the factors in play.

Hope this helps!

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