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

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, if each is true, would allay the electronic transmittal operators' fears of unfair competition?
Type -weaken

(A) If the Postal Service were to offer electronic transmission, it could not make a profit on first -class mail. - Correct - If most of the first-class mail is sent via electronic transmission, then profits from first-class mail will reduce substantially and thus the postal service will not be able to subsidize electronic transmission.

(B) If the Postal Service were to offer electronic transmission, it would have a monopoly on that kind of service. - Incorrect

(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. - Irrelevant

(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. - Irrelevant - sending more items will not have benefit in electronic transmission but this does not help with the fact that postal service could subsidize electronic transmission

(E) Electronic transmission will never be cost-effective for material not sent by first-class mail such as newspapers and bulk mail. - Irrelevant - we are not bothered about items that are not sent by first-class mail

Answer A