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globaldesi
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13 Dec 2020, 21:56
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
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Question Stats:
61% (01:45) correct
39%
(01:46)
wrong
based on 571
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If government regulations prohibit cable companies from establishing monopolies, more companies will enter the market to provide cable television services. If consumers have more cable companies to choose from, consumers will be able to choose the provider that is the least expensive. When consumers have choices in choosing a vendor, vendors must compete on price and on customer service, leading to reduced prices and better customer service.
Which of the following must be true if the statements are true?
A. The government should prohibit cable companies from establishing monopolies.
B. Competition in a industry sometimes leads to lower pricing.
C. Not all industries would see improvement in customer service if there were more vendors in the industry.
D. Customers will always choose the least expensive provider of a service.
E. The cable company, which presently holds a monopoly, will improve its customer service if other companies are allowed to provide cable services in the same market.
Which of the following must be true if the statements are true?
A. The government should prohibit cable companies from establishing monopolies.
B. Competition in a industry sometimes leads to lower pricing.
C. Not all industries would see improvement in customer service if there were more vendors in the industry.
D. Customers will always choose the least expensive provider of a service.
E. The cable company, which presently holds a monopoly, will improve its customer service if other companies are allowed to provide cable services in the same market.
DinoPen
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14 Dec 2020, 09:49
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If government regulations prohibit cable companies from establishing monopolies, more companies will enter the market to provide cable television services. If consumers have more cable companies to choose from, consumers will be able to choose the provider that is the least expensive. When consumers have choices in choosing a vendor, vendors must compete on price and on customer service, leading to reduced prices and better customer service.
No monopolies -> More companies
More Companies = Cheaper products
Companies compete on Price + Customer service leading to decreased price and increased service.
Which of the following must be true if the statements are true?
A. The government should prohibit cable companies from establishing monopolies.
There is no indication that the government SHOULD prohibit a company from becoming a monopoly. This is merely a conditional 'what if' situation.
B. Competition in a industry sometimes leads to lower pricing.
Yes. Based on the second and third arguments, we can infer that competition will lead to lower pricing.
C. Not all industries would see improvement in customer service if there were more vendors in the industry.
We can't infer this since there is not 'black sheep' industry to base this justification.
D. Customers will always choose the least expensive provider of a service.
We can't infer this since there is no indication that a customer will ALWAYS choose the cheapest option.
E. The cable company, which presently holds a monopoly, will improve its customer service if other companies are allowed to provide cable services in the same market.
This is directly contradictory of what the argument states. The assumption here is that since the cable company has a monopoly, there would not be any other company coming into the market.
No monopolies -> More companies
More Companies = Cheaper products
Companies compete on Price + Customer service leading to decreased price and increased service.
Which of the following must be true if the statements are true?
A. The government should prohibit cable companies from establishing monopolies.
There is no indication that the government SHOULD prohibit a company from becoming a monopoly. This is merely a conditional 'what if' situation.
B. Competition in a industry sometimes leads to lower pricing.
Yes. Based on the second and third arguments, we can infer that competition will lead to lower pricing.
C. Not all industries would see improvement in customer service if there were more vendors in the industry.
We can't infer this since there is not 'black sheep' industry to base this justification.
D. Customers will always choose the least expensive provider of a service.
We can't infer this since there is no indication that a customer will ALWAYS choose the cheapest option.
E. The cable company, which presently holds a monopoly, will improve its customer service if other companies are allowed to provide cable services in the same market.
This is directly contradictory of what the argument states. The assumption here is that since the cable company has a monopoly, there would not be any other company coming into the market.
14 Dec 2020, 10:10
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This is a MUST BE True question, so the inference should not have any detail that is not mentioned in the argument.
A. The government should prohibit cable companies from establishing monopolies.
The argument says "If government regulations prohibit ...". There is no suggestion here.
B. Competition in a industry sometimes leads to lower pricing.
The argument says "vendors must compete on price and on customer service, leading to reduced prices.." Looks correct.
C. Not all industries would see improvement in customer service if there were more vendors in the industry.
The argument just talks about cable companies and does not name any industry for exclusion.
D. Customers will always choose the least expensive provider of a service.
Too strong tone. " consumers will be able to choose" does not imply that consumers will always do so. Despite they have the ability to choose least expensive, they can choose other provider for some particular reason e.g. brand, social status etc.
E. The cable company, which presently holds a monopoly, will improve its customer service if other companies are allowed to provide cable services in the same market.
The argument just says "If government regulations prohibit cable companies from establishing monopolies" . It has no mention of those already holding monopolies.
B is correct.
A. The government should prohibit cable companies from establishing monopolies.
The argument says "If government regulations prohibit ...". There is no suggestion here.
B. Competition in a industry sometimes leads to lower pricing.
The argument says "vendors must compete on price and on customer service, leading to reduced prices.." Looks correct.
C. Not all industries would see improvement in customer service if there were more vendors in the industry.
The argument just talks about cable companies and does not name any industry for exclusion.
D. Customers will always choose the least expensive provider of a service.
Too strong tone. " consumers will be able to choose" does not imply that consumers will always do so. Despite they have the ability to choose least expensive, they can choose other provider for some particular reason e.g. brand, social status etc.
E. The cable company, which presently holds a monopoly, will improve its customer service if other companies are allowed to provide cable services in the same market.
The argument just says "If government regulations prohibit cable companies from establishing monopolies" . It has no mention of those already holding monopolies.
B is correct.
