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Re: All other things being equal, car insurance for the repair of collisio [#permalink]
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I feel that this is straight forward answer, If average cost of repairing is more in R than in L. Insurance companies will not be making huge profit.

(A) From premise 1: car insurance in Richmond is higher, say $1,500 in Ricmond and $1,000 in Layton. If the average cost of repairing is the same in both cities, say $800, then: profit margin in Richmond is $1,500 - $800 = $700
profit margin in Richmond is $1,000 - $800 = $200
Hence, (A) strengthens the conclusion : have a larger profit margin in Richmond
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Re: All other things being equal, car insurance for the repair of collisio [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: All other things being equal, car insurance for the repair of collisio [#permalink]
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