noboru wrote:
In a mature tourist market such as Bellaria there are only two ways hotel owners can increase profits: by building more rooms or by improving what is already there. Rigid land-use laws in Bellaria rule out construction of new hotels or, indeed, any expansion of hotel capacity. It follows that hotel owners cannot increase their profits in Bellaria since Bellarian hotels______
Which one of the following logically completes the argument?
(A) are already operating at an occupancy rate approaching 100 percent year-round
(B) could not have been sited any more attractively than they are even in the absence of land-use laws
(C) have to contend with upward pressures on the cost of labor which stem from an incipient shortage of trained personnel
(D) already provide a level of luxury that is at the limits of what even wealthy patrons are prepared to pay for
(E) have shifted from serving mainly Bellarian tourists to serving foreign tourists traveling in organized tour groups
Find a reason why hotels at Bellaria cannot increase their profits??
(A) are already operating at an occupancy rate approaching 100 percent year-round
This can charge more now, if its working at full occupancy.
(B) could not have been sited any more attractively than they are even in the absence of land-use laws
Irrelevant
(C) have to contend with upward pressures on the cost of labor which stem from an incipient shortage of trained personnel
Upward pressures -> Out of scope.
(D) already provide a level of luxury that is at the limits of what even wealthy patrons are prepared to pay for
So now this is what we were looking for, level of luxury is at its peak, this means that they can now get a fixed level of profit. ->
Correct (E) have shifted from serving mainly Bellarian tourists to serving foreign tourists traveling in organized tour groups
Organized tour groups, they can still charge more money from them. More people, more profit
_________________
If you notice any discrepancy in my reasoning, please let me know. Lets improve together.
Quote which i can relate to.
Many of life's failures happen with people who do not realize how close they were to success when they gave up.