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mba
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Need explanations Please!!



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Paul
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CR 28 Jul 2004, 07:17
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Quote:
In an effort to increase the number of taxicabs available during the hours from 8:00PM to 6:00AM, the Taxi Commission, which sets fares, has proposed a $1 per-ride surcharge during those hours. This is unlikely to have any effect on the availability of taxis. The fleet owners who lease cabs to drivers on a shift basis will simply raise the per-shift charge for those hours, thus eliminating any incentive for the individual driver to work the nighttime hours.

Which of the following weakens the argument above?
A) Fleet owners usually have unleased cars during the nighttime hours covered by the Commission's proposal
B) Most people who need a taxi during the nighttime hours would not mind paying the $1 surcharge
C) The majority of licensed cabs are owned by individual drivers who do not lease them from fleet owners
D) The previous year the Commission approved a 10-percent increase in taxi fares
E) Passengers would not treat the surcharge as part of the driver's tip
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In order to weaken the conclusion, we have to find the answer that says taxi drivers will indeed be paid more due to the surcharge so they will indeed work longer hours. 1min. Only C says that licensed cabs are not leased so the whole amount of the surcharge will go to the taxi drivers and thus, the latter will have an incentive to work during those late hours.
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OlegC
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CR 28 Jul 2004, 07:27
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Yes C, I agree with Paul

The author states that:

* the new measure will not increase the number of available taxes because...
* it will not benefit the drivers because...
* although the drivers will earn more, they will pay more to the car owners

However, if most of the drivers own their cars, then the extra dollar they earn represents an increase in their income and serves as an incentive for working at night
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Can you help refuting choice (A) :oops:
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Paul
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A actually strengthens the argument as if the fleet owners have unused cars, it is because taxi owners are reluctant to use them: the latter will have no incentive to do so because they will not make any profit from it.
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Bhai
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C is my FA. However A can also be a strong contender.

For both A and C there are different assumptions. There is something said about the per ride and nothing said about the parked taxis.

Also if you assume that the parked cars will have to pay surcharge, then the car company, instead of paying surchage on no revenue, will ask the drivers to take the car at lower rate, so that they can also earn something to cover their surcharge cost. In this case the drivers will save more money.

Well if the focus were only on the drivers who own their taxi cabs, then why was there a discussion about the fleetowners. Then A.

If all conditions are considered, then C does the most torture.
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Thanks Paul for your comments!

What I understood from choice (A) was, if taxi owners have unleased taxis during night time, (which could either imply Taxi owners are not running the taxis at night, or they are not charging any lease amount!!!) well I took the second assumption that they are not charging any lease amount :(

But yes you are right! it has to be (C), very stupid of me to make such a dumb assumption I guess!! :oops:
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guys...found a very ambigous one...give it a try!
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Its a straight C



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