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# In the United States, the Postal Service has a monopoly on

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Intern
Joined: 12 Aug 2006
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In the United States, the Postal Service has a monopoly on [#permalink]

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07 Nov 2006, 02:50
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In the United States, the Postal Service has a monopoly on first-class mail, but much of what is sent first class could be transmitted electronically. Electronic transmittal operators argue that if the Postal Service were to offer electronic transmission, it would have an unfair advantage, since its electronic transmission service could be subsidized from the profits of the monopoly

Which of the following questions can be answered on the basis of the information in the passage above?
(A) Is the Postal Service as efficient as privately owned electric transmission services?
(B) If private operators were allowed to operate first-class mail services, would they choose to do so?
(C) Do the electronic transmittal operators believe that the Postal Service makes a profit on first-class mail?
(D) Is the Postal Service prohibited from offering electronic transmission services?
(E) Is the Postal Service expected to have a monopoly on electronic transmission?

PS select this space for OA & for my doubt:
OA is C, but what is wrong with E. Is it that, it is the view of only Electronic transmittal operators & hence not be a generalized view (of the whole public).

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GMAT Club Legend
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Location: Singapore

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07 Nov 2006, 03:09
C is the best choice. The operators believe that if the postal service operates electronic transmission service, they can use the profits from their first-class mail (which the postal service monopolize) to get an unfair unadvantage.

A,B --> clearly cannot be answered with the information provided in the passage
D --> Can't say yes or no because nothing is mentioned in the passage
E --> unfair advantage cannot be translate to monopoly

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VP
Joined: 15 Jul 2004
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Schools: Wharton (R2 - submitted); HBS (R2 - submitted); IIMA (admitted for 1 year PGPX)

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07 Nov 2006, 05:11
C it is..

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Senior Manager
Joined: 17 Oct 2006
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07 Nov 2006, 07:56
C is the correct answer..E is out since talk of postal service offering electronic transmission is hypothetical....

In the United States, the Postal Service has a monopoly on first-class mail, but much of what is sent first class could be transmitted electronically. Electronic transmittal operators argue that if the Postal Service were to offer electronic transmission, it would have an unfair advantage, since its electronic transmission service could be subsidized from the profits of the monopoly

Which of the following questions can be answered on the basis of the information in the passage above?
(A) Is the Postal Service as efficient as privately owned electric transmission services?
(B) If private operators were allowed to operate first-class mail services, would they choose to do so?
(C) Do the electronic transmittal operators believe that the Postal Service makes a profit on first-class mail?
(D) Is the Postal Service prohibited from offering electronic transmission services?
(E) Is the Postal Service expected to have a monopoly on electronic transmission?

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Director
Joined: 10 Oct 2005
Posts: 713

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07 Nov 2006, 08:27
arjsingh1976 wrote:
C is the correct answer..E is out since talk of postal service offering electronic transmission is hypothetical....

In the United States, the Postal Service has a monopoly on first-class mail, but much of what is sent first class could be transmitted electronically. Electronic transmittal operators argue that if the Postal Service were to offer electronic transmission, it would have an unfair advantage, since its electronic transmission service could be subsidized from the profits of the monopoly

Which of the following questions can be answered on the basis of the information in the passage above?
(A) Is the Postal Service as efficient as privately owned electric transmission services?
(B) If private operators were allowed to operate first-class mail services, would they choose to do so?
(C) Do the electronic transmittal operators believe that the Postal Service makes a profit on first-class mail?
(D) Is the Postal Service prohibited from offering electronic transmission services?
(E) Is the Postal Service expected to have a monopoly on electronic transmission?

Good explanation here)Thanks
BTW C for me 2
_________________

IE IMBA 2010

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Director
Joined: 06 Sep 2006
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07 Nov 2006, 09:23
C is the only one makes sense since the stem talks about 'monoply' in first class service and it seems from the passage that they are willing to pitch a bid for electronic form of first class mail service. So, yes they believe it is a profitable service for Postal service.

C.

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Director
Joined: 17 Jul 2006
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07 Nov 2006, 10:05
C is the right one.

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07 Nov 2006, 10:05
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