Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Jun 0408:30 AM PDT
-09:30 AM PDT
For most test takers, Data Insights is the most challenging section on the GMAT, with test takers scoring several points lower on average on DI than on Quant or Verbal and completing the section with less time to spare.
May 2910:00 AM IST
-11:00 PM IST
Start your journey with a fully customized action plan and work with a dedicated mentor to achieve a 735+ score.- Jun 03
08:30 AM PDT
-09:30 AM PDT
In Episode 7 of our GMAT Ninja CR series, we are rounding up the oddballs, the misfits, and the format-benders: EXCEPT, Fill-In-The-Blanks, and other unusual Critical Reasoning question types. When you see a question that ends with a literal blank line - Jun 10
06:00 AM PDT
-06:15 PM PDT
Register for the GMAT Club Virtual MBA Spotlight Fair – the world’s premier event for serious MBA candidates. This is your chance to hear directly from Admissions Directors at nearly every Top 30 MBA program..
28 Sep 2023, 12:18
Kudos
Bookmarks
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
(N/A)
Question Stats:
100% (01:46) correct
0%
(00:00)
wrong
based on 1
sessions
History
Date
Time
Result
Not Attempted Yet
Clearbell Telephone provides slow-dialing (SD) service to customers for a low fee, and fast-dialing (FD) service to other customers who pay a somewhat higher fee. FD technology, however, is so efficient that it costs Clearbell substantially less per average call to provide than does SD. Nonetheless, accountants have calculated that Clearbell’s profits would drop if it provided FD to all its customers at the current low-fee rate.
Assume that installation costs for FD are insignificant if the customer already has SD service. Which of the following, if true about Clearbell, best explains the results of the accountants’ calculation?
A. The extra revenue collected from customers who pay the high fee is higher than the extra cost of providing SD to customers who pay the low fee.
B. The low fee was increased by 6 percent last year, whereas the higher fee was not increased last year.
C. Although 96 percent of customers regard FD service as reliable and more convenient than SD, fewer than 10 percent of them choose to pay the higher fee for FD service.
D. The company’s competitors generally provide business customers with FD service at low-fee rates.
E. Profits rose slightly each month for the first three months after FD was first offered to customers, then fell slightly each month for the succeeding three months.
Assume that installation costs for FD are insignificant if the customer already has SD service. Which of the following, if true about Clearbell, best explains the results of the accountants’ calculation?
A. The extra revenue collected from customers who pay the high fee is higher than the extra cost of providing SD to customers who pay the low fee.
B. The low fee was increased by 6 percent last year, whereas the higher fee was not increased last year.
C. Although 96 percent of customers regard FD service as reliable and more convenient than SD, fewer than 10 percent of them choose to pay the higher fee for FD service.
D. The company’s competitors generally provide business customers with FD service at low-fee rates.
E. Profits rose slightly each month for the first three months after FD was first offered to customers, then fell slightly each month for the succeeding three months.
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Critical Reasoning (CR) Forum
Still interested in this question? Check out the "Best Topics" block below for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
28 Sep 2023, 12:26
Kudos
Bookmarks
dzanum11
Hi,
We already have a discussion of this question in detail HERE. If you have any further questions, please feel free to ask there. We appreciate your cooperation.
In addition, we kindly ask you to carefully read and follow Our Posting Rules. Thank you for your understanding.
Please note that this topic is now locked and archived.
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Critical Reasoning (CR) Forum
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
Moderators:
645 posts
