Some airlines allegedly reduce fares on certain routes to a level at which they lose money, in order to drive competitors off those routes. However, this method of eliminating competition cannot be profitable in the long run. Once an airline sucessfully implements this method, any attempt to recoup the earlier losses by charging high fares on that route for an extended period would only provide competitors with a better opportunity to undercut the airline's fares.

Which of the following, if true, most seriously weakens the argument?

A) In some countries it is not illegal for a company to drive away competitors by selling a product below cost.

B) Airline executives generally believe that a company that once underpriced its fares to drive away competitors is very likely to do so again if new competitors emerge.
Correct Answer
Reason: Conclusion talks about the methodology of cutting pricing on a route to kick out competitors. Only this options gives a weakening stand to this methodology!

C) As part of promotions designed to attract new customers, airlines sometimes reduce their ticket prices to below an economically sustainable level.

D) On deciding to stop serving particular routes, most airlines shift resources to other routes rather than reduce the size of their operations.

E) When airlines dramatically reduce their fares on a particular route, the total number of air passengers on that route increases greatly.
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Lot of discussion going on here...

I understand why B is correct, but I dont get why E is not. Please clarify. Thanks.
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Some airlines allegedly reduce fares on certain routes to a level at which they lose money, in order to drive competitors off those routes. However, this method of eliminating competition cannot be profitable in the long run. Once an airline successfully implements this method, any attempt to recoup the earlier losses by charging high fares on that route for an extended period would only provide competitors with a better opportunity to undercut the airline's fares.

Which of the following, if true, most seriously weakens the argument?

(A) In some countries it is not illegal for a company to drive away competitors by selling a product below cost. (NOT RELAVANT)
(B) Airline executives generally believe that a company that once underpriced its fares to drive away competitors is very likely to do so again if new competitors emerge.
CONCLUSION: However, this method of eliminating competition cannot be profitable in the long run.
ANSWER: Must weaken the conclusion. Ans: B is a cyclic process.
(C) As part of promotions designed to attract new customers, airlines sometimes reduce their ticket prices to below an economically sustainable level.(ATTRACTS NEW CUSTOMERS...INCREASE REVENUES BUT DOES NOT DRIVE COMPETITIORS)
(D) On deciding to stop serving particular routes, most airlines shift resources to other routes rather than reduce the size of their operations.(THIS WILL SAVE MONEY BUT DOES NOT DRIVE COMPETITIORS)
(E) When airlines dramatically reduce their fares on a particular route, the total number of air passengers on that route increases greatly.(WILL INCREASE REVENUES NO DISCUSSION ABOUT NOT DRIVE COMPETITIORS)

HOPE THIS HELPS !!!!

"believe" cannot be the word in the real gmat answer. This question is too un gmat-like

BTW this is predator dynamics . I found a very good explanation by Ron - I pray I dont see the jugglery of words "believe" and "likely" - I usually thrash them into garbage when doing the CR. The reason gmat answer is based on more than someone's belief to be correct. Other answers fail to do what it does - thats why its the only credited answer.

http://www.manhattangmat.com/forums/cr- ... t1832.html

I think E