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07 Jun 2010, 14:44
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D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
73% (01:24) correct
27%
(01:51)
wrong
based on 554
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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
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
07 Jun 2010, 21:11
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I would say the answer is D.
The only two ways you can increase profits is to build more rooms or improve existing rooms, but you can't build more hotels or increase current capacity. So hotels would have make existing rooms better.
D says why the hotels wont be able to increase profits. If the hotels already provide the peak of luxury then you can't make the rooms better by themselves and, thus, you can't increase revenue by making existing rooms nicer or more luxurious.
Hope that helps.
What is the OA?
Thanks,
Jared
The only two ways you can increase profits is to build more rooms or improve existing rooms, but you can't build more hotels or increase current capacity. So hotels would have make existing rooms better.
D says why the hotels wont be able to increase profits. If the hotels already provide the peak of luxury then you can't make the rooms better by themselves and, thus, you can't increase revenue by making existing rooms nicer or more luxurious.
Hope that helps.
What is the OA?
Thanks,
Jared
16 Jun 2010, 12:04
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Its D.
Reply to ramana.
The question stem ends with since, hence what next is going to follow it will be premise to the argument. So what can be the possible premises or reasons for hotels in Bellaria for not getting the increased profits.
As mentioned in the argument, 2 possible reasons to increase the profits are -
1. expand the hotels by increasing number of rooms ( not a possible option in Bellaria due to laws)
2. make the hotel more attractive.
So if the hotels in Bellaria are already attractive, there can be no other possible options to increase the profits. Hence D.
It's not B because, option B is not suggesting any reason for not getting the increased profits.
I hope your doubt is clear.
Thanks,
Akhil M.Parekh
Reply to ramana.
The question stem ends with since, hence what next is going to follow it will be premise to the argument. So what can be the possible premises or reasons for hotels in Bellaria for not getting the increased profits.
As mentioned in the argument, 2 possible reasons to increase the profits are -
1. expand the hotels by increasing number of rooms ( not a possible option in Bellaria due to laws)
2. make the hotel more attractive.
So if the hotels in Bellaria are already attractive, there can be no other possible options to increase the profits. Hence D.
It's not B because, option B is not suggesting any reason for not getting the increased profits.
I hope your doubt is clear.
Thanks,
Akhil M.Parekh
