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In the United States, the Postal Service has a monopoly on

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In the United States, the Postal Service has a monopoly on [#permalink] New post 02 Aug 2009, 14:20
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67% (03:05) correct 33% (01:32) wrong based on 3 sessions
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.
15. Which of the following, if each is true, would allay the electronic transmittal operators’ fears of unfair competition?
(A) If the Postal Service were to offer electronic transmission, it could not make a profit on first-class mail.
(B) If the Postal Service were to offer electronic transmission, it would have a monopoly on that kind of service.
(C) Much of the material that is now sent by first-class mail could be delivered much faster by special package couriers, but is not sent that way because of cost.
(D) There is no economy of scale in electronic transmission—that is, the cost per transaction does not go down as more pieces of information are transmitted.
(E) Electronic transmission will never be cost-effective for material not sent by first-class mail such as newspapers and bulk mail.
16. 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?
(B) If private operators were allowed to operate first-class mail services, would they choose to do so?
(C) Do the electronic transmittal operators believe that the Postal Service makes a profit on first-class mail?
(D) Is the Postal Service prohibited from offering electronic transmission services ?
(E) Is the Postal Service expected to have a monopoly on electronic transmission?

OA after some discussion
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Re: USPS [#permalink] New post 02 Aug 2009, 16:10
15) A
If the Postal Service were to offer electronic transmission, it could not make a profit on first-class mail - Since no profits are made on first class mail, USPS cannot use any profits to subsidize electronic transmission.

16) C
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Re: USPS [#permalink] New post 02 Aug 2009, 16:35
correct. Can you explain your reasoning for C
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Re: USPS [#permalink] New post 02 Aug 2009, 17:00
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(C) Do the electronic transmittal operators believe that the Postal Service makes a profit on first-class mail - Electronic transmittal operators fear that USPS will have unfair advantage as their profits can be used to subsidize electronic transmission service. The profits are because of first class mail.
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Re: USPS [#permalink] New post 03 Aug 2009, 03:33
Aleehsgonji wrote:
(C) Do the electronic transmittal operators believe that the Postal Service makes a profit on first-class mail - Electronic transmittal operators fear that USPS will have unfair advantage as their profits can be used to subsidize electronic transmission service. The profits are because of first class mail.


Nicely explained!
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Re: USPS [#permalink] New post 03 Aug 2009, 04:37
Agree wtih A and C
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Re: USPS [#permalink] New post 05 Aug 2009, 02:11
(A) and (C) it is.
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Re: USPS [#permalink] New post 05 Aug 2009, 03:33
A and C
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Re: USPS [#permalink] New post 05 Aug 2009, 07:48
agree with A and C
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Re: In the United States, the Postal Service has a monopoly on [#permalink] New post 11 Jun 2014, 00:07
sher676 wrote:
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.
15. Which of the following, if each is true, would allay the electronic transmittal operators’ fears of unfair competition?
(A) If the Postal Service were to offer electronic transmission, it could not make a profit on first-class mail.
(B) If the Postal Service were to offer electronic transmission, it would have a monopoly on that kind of service.
(C) Much of the material that is now sent by first-class mail could be delivered much faster by special package couriers, but is not sent that way because of cost.
(D) There is no economy of scale in electronic transmission—that is, the cost per transaction does not go down as more pieces of information are transmitted.
(E) Electronic transmission will never be cost-effective for material not sent by first-class mail such as newspapers and bulk mail.
16. 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?
(B) If private operators were allowed to operate first-class mail services, would they choose to do so?
(C) Do the electronic transmittal operators believe that the Postal Service makes a profit on first-class mail?
(D) Is the Postal Service prohibited from offering electronic transmission services ?
(E) Is the Postal Service expected to have a monopoly on electronic transmission?

OA after some discussion


it is good question , I am trying to show some light on this :-

look at last sentence,"
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."

--->electronic service could be subsidized from profits of postal mail
15.) same thing -If the Postal Service were to offer electronic transmission, it could not make a profit on first-class mail- means profit can be used to bear the loss or as investment :)
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Re: In the United States, the Postal Service has a monopoly on [#permalink] New post 20 Sep 2014, 17:00
So question for each one why another answer is wrong:

1. D, why is D not correct? If the cost is the same they won't be making more money than they currently are?

2. E, why is E not correct? The last sentence is saying all this stuff is based on the profits from the monopoly, so the assumption is that it will in fact have a monopoly?
Re: In the United States, the Postal Service has a monopoly on   [#permalink] 20 Sep 2014, 17:00
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