Find all School-related info fast with the new School-Specific MBA Forum

It is currently 21 May 2013, 18:02
Customize  |  Hide

Which of the following most logically completes the passage?

  Question banks Downloads My Bookmarks Reviews  
Author Message
TAGS:
Director
Director
Joined: 21 Dec 2009
Posts: 592
Concentration: Entrepreneurship, Finance
Followers: 13

Kudos [?]: 130 [0], given: 20

GMAT Tests User
Which of the following most logically completes the passage? [#permalink] New post 29 Oct 2012, 02:43
00:00

Question Stats:

100% (02:31) correct 0% (00:00) wrong based on 1 sessions
Which of the following most logically completes the passage?

The Metroville Transit Authority’s bus from downtown Metroville to neighboring Crowestown is currently a nonstop
service. Because of planned road repairs, the bus is going to be rerouted along Metroville’s Main Street, where
several stops will be added. Since the bus will pick up passengers making local trips on Main in addition to its
Crowestown passengers, its ridership will increase; but the rerouting will probably not increase the transit authority’s
overall revenue, because __________.

A. the fare for a local trip on Main Street is less than the fare for a trip from Metroville to Crowestown
B. the Metroville Transit Authority will increase the number of trips the Crowestown bus makes per day
C. local passengers picked up by the Crowestown bus on Main Street would otherwise have taken other transit authority buses
D. the Metroville Transit Authority bus is the only way to get from downtown Metroville to Crowestown using mass transit
E. the planned road repairs are expected to require several months to complete

Despite increased ridership, revenue will not increase...because??? i was looking for an increased cost in something
but there was none...Explanations please.
_________________

KUDOS me if you feel my contribution has helped you.

Intern
Intern
Joined: 04 Dec 2011
Posts: 26
Followers: 0

Kudos [?]: 10 [0], given: 3

Re: Transit Authority’s bus from downtown [#permalink] New post 29 Oct 2012, 03:43
Which of the following most logically completes the passage?

The Metroville Transit Authority’s bus from downtown Metroville to neighboring Crowestown is currently a nonstop
service. Because of planned road repairs, the bus is going to be rerouted along Metroville’s Main Street, where
several stops will be added. Since the bus will pick up passengers making local trips on Main in addition to its
Crowestown passengers, its ridership will increase; but the rerouting will probably not increase the transit authority’s
overall revenue, because __________.

A. the fare for a local trip on Main Street is less than the fare for a trip from Metroville to Crowestown
B. the Metroville Transit Authority will increase the number of trips the Crowestown bus makes per day
C. local passengers picked up by the Crowestown bus on Main Street would otherwise have taken other transit authority buses
D. the Metroville Transit Authority bus is the only way to get from downtown Metroville to Crowestown using mass transit
E. the planned road repairs are expected to require several months to complete

Despite increased ridership, revenue will not increase...because??? i was looking for an increased cost in something
but there was none...Explanations please.

C is correct...
Director
Director
User avatar
Joined: 02 Jul 2012
Posts: 755
Location: India
Concentration: Strategy
GMAT 1: 740 Q49 V42
GPA: 3.8
WE: Engineering (Energy and Utilities)
Followers: 19

Kudos [?]: 257 [0], given: 45

GMAT Tests User
Re: Transit Authority’s bus from downtown [#permalink] New post 29 Oct 2012, 03:55
prasadkhadpe wrote:
Which of the following most logically completes the passage?

The Metroville Transit Authority’s bus from downtown Metroville to neighboring Crowestown is currently a nonstop
service. Because of planned road repairs, the bus is going to be rerouted along Metroville’s Main Street, where
several stops will be added. Since the bus will pick up passengers making local trips on Main in addition to its
Crowestown passengers, its ridership will increase; but the rerouting will probably not increase the transit authority’s
overall revenue, because __________.

A. the fare for a local trip on Main Street is less than the fare for a trip from Metroville to Crowestown
B. the Metroville Transit Authority will increase the number of trips the Crowestown bus makes per day
C. local passengers picked up by the Crowestown bus on Main Street would otherwise have taken other transit authority buses
D. the Metroville Transit Authority bus is the only way to get from downtown Metroville to Crowestown using mass transit
E. the planned road repairs are expected to require several months to complete

Despite increased ridership, revenue will not increase...because??? i was looking for an increased cost in something
but there was none...Explanations please.

C is correct...


There are two situations where revenues can remain the same.
1) There are increased revenues and increased expenses which cancel out ech other.
2) There are no increased revenues at all.

Choice C is an illustration of the second situation.Lets say Transit Authority has two bus routes 1A - Metroville to Crowestown, 1B - Metroville Main Street

It clearly says that the people who are now travelling in 1A would have otherwise travelled by 1B. So anyway, the revenues would have come to the transit authority. Hence there would be no increase in revenues.

Kudos Please... If my post helped.
_________________

Kudos Please... If my post helped.

Thanks To The Almighty - My GMAT Debrief
My Own CR Question 1|My Own CR Question 2|My Own DS Question 1|My Own DS Question 2|
My Own PS Question 1

Director
Director
Joined: 21 Dec 2009
Posts: 592
Concentration: Entrepreneurship, Finance
Followers: 13

Kudos [?]: 130 [0], given: 20

GMAT Tests User
Re: Transit Authority’s bus from downtown [#permalink] New post 29 Oct 2012, 05:25
These passengers are those who would otherwise have taken another bus belonging
to the same company....i.e still one of the Tansit Authority buses.
No new passengers...
never read it that way...

Thanks Prasad
_________________

KUDOS me if you feel my contribution has helped you.

Re: Transit Authority’s bus from downtown   [#permalink] 29 Oct 2012, 05:25
    Similar topics Author Replies Last post
Similar
Topics:
Popular new posts Which of the following most logically completes the passage? marine 21 21 Sep 2004, 04:19
New posts Which of the following most logically completes the passage? cybera 3 14 Jul 2005, 17:07
Popular new posts Which of the following most logically completes the passage? okdongdong 20 21 Jul 2005, 07:00
New posts Which of the following most logically completes the passage? KC 3 02 Nov 2006, 22:13
New posts which of the following most logically completes the passage? alimad 1 19 Jun 2008, 14:28
Display posts from previous: Sort by

Which of the following most logically completes the passage?

  Question banks Downloads My Bookmarks Reviews  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.