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# CRITICAL REASONING (EVALUATION)

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Intern
Joined: 09 Jan 2018
Posts: 25

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01 Feb 2018, 14:50
1
Most cable television companies currently require customers to subscribe to packages of channels, but consumer groups have recently proposed legislation that would force the companies to offer a la carte pricing. Subscribers would pay less, argue the consumer groups, because they could purchase only the desired channels. However, the cable industry argues that under the current package pricing, popular channels subsidize less-popular ones, providing more options for viewers. For this reason, the industry claims that it is always cheaper for the consumer to purchase many bundled channels than to buy them individually. Which of the following would be most important for the government to determine before deciding whether to require cable television companies to offer a la carte pricing in order to reduce consumer costs?
A) Whether the total number of channels offered to consumers would decrease, along with programming diversity, as a result of the a la carte pricing structure
B) Whether advertising revenue for the cable television companies would decrease as a result of the a la carte pricing structure
C) Whether the vast majority of consumers would greatly reduce the number of channels purchased if given the option of purchasing them individually
D) Whether cable and satellite companies currently have the ability to buy channels individually from programmers and content providers
E) Whether a la carte subscribers would be required to have new television set-top boxes

Correct answer is C, According to my understanding D could be correct as well. If cable & satellite companies can't buy the channels from content providers, how will they be able to offer their consumers a la carte offer. Any suggestions why D is wrong are most welcome.
Cheers!
Intern
Joined: 09 Jan 2018
Posts: 25

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01 Feb 2018, 14:51
According to my understanding D could be correct as well. If cable & satellite companies can't buy the channels from content providers, how will they be able to offer their consumers a la carte offer. Any suggestions why D is wrong are most welcome.
Manager
Joined: 16 Jan 2018
Posts: 59
Concentration: Finance, Technology
GMAT 1: 600 Q40 V33

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01 Feb 2018, 18:53
1
Is this a OG question?
I think C makes sense because if vast majority reduces the channels purchased then provider loses the ability to subsidize less-popular channels. Vast majority reduces the channels so all of them are probably only subscribing to popular ones.

D is kind of funny and added premise since it completely puts a stop to the argument. Why even discuss price if they dont even have the ability??
Should't they have brought it up at the very outset then when consumer group argued in favor of individual channel?

Intern
Joined: 09 Jan 2018
Posts: 25

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02 Feb 2018, 07:33
I agree with the explanation of option C but idk somehow D seemed quite tempting, but as you said that its like added premise hence the wrong option.. The concern is how do you stop thinking in that direction, one way I guess it is best to stick to the info provided rather than thinking too much
Re: CRITICAL REASONING (EVALUATION)   [#permalink] 02 Feb 2018, 07:33
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