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In the United States, the Postal Service has a monopoly on first-class

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In the United States, the Postal Service has a monopoly on first-class  [#permalink]

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New post 27 Nov 2018, 08:26
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  85% (hard)

Question Stats:

53% (02:09) correct 47% (02:16) wrong based on 461 sessions

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Project CR Butler:Day 22:Critical Reasoning (CR1)


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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, if each is true, would allay the electronic transmittal operators' fears of unfair competition?


(A) If the Postal Service were to offer electronic transmission, it could not make a profit on first -class mail.

(B) If the Postal Service were to offer electronic transmission, it would have a monopoly on that kind of service.

(C) Much of the material that is now sent by first class mail could be delivered much faster by special package couriers, but is not sent that way because of cost.

(D) There is no economy of scale in electronic transmission -that is, the cost per transaction does not go down as more pieces of information are transmitted.

(E) Electronic transmission will never be cost effective for material not sent by first-class mail such as newspapers and bulk mail.

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Re: In the United States, the Postal Service has a monopoly on first-class  [#permalink]

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New post 27 Nov 2018, 21:10
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First of all, "Allay" Means to diminish or to put to rest.So this is basically a weaken question.

Option A states that

(A) If the Postal Service were to offer electronic transmission, it could not make a profit on first -class mail.

So if the postal service is not able to make a profit, then it cannot subsidize the electronic transmission.

So in this case the fears of the electronic transmittal operators' fears of unfair competition are put to rest.

Hope this helps.
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Re: In the United States, the Postal Service has a monopoly on first-class  [#permalink]

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New post 07 Dec 2018, 12:06
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, if each is true, would allay the electronic transmittal operators' fears of unfair competition?
Type -weaken

(A) If the Postal Service were to offer electronic transmission, it could not make a profit on first -class mail. - Correct - If most of the first-class mail is sent via electronic transmission, then profits from first-class mail will reduce substantially and thus the postal service will not be able to subsidize electronic transmission.

(B) If the Postal Service were to offer electronic transmission, it would have a monopoly on that kind of service. - Incorrect

(C) Much of the material that is now sent by first class mail could be delivered much faster by special package couriers, but is not sent that way because of cost. - Irrelevant

(D) There is no economy of scale in electronic transmission -that is, the cost per transaction does not go down as more pieces of information are transmitted. - Irrelevant - sending more items will not have benefit in electronic transmission but this does not help with the fact that postal service could subsidize electronic transmission

(E) Electronic transmission will never be cost-effective for material not sent by first-class mail such as newspapers and bulk mail. - Irrelevant - we are not bothered about items that are not sent by first-class mail

Answer A
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Re: In the United States, the Postal Service has a monopoly on first-class  [#permalink]

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New post 01 Apr 2019, 01:09
I still don't get wht question is asking and what we need to weak....

Please help... ?

Posted from my mobile device
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Re: In the United States, the Postal Service has a monopoly on first-class  [#permalink]

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New post 06 Jun 2019, 21:21
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rakeshtewatia0105 wrote:
I still don't get wht question is asking and what we need to weak....

Please help... ?

Posted from my mobile device



Let me share with you how I viewed the question.

Premise: Postal service has monopoly in first class email + First class mail can be sent electronically + Postal Service is making profit from its first class mail
Conclusion: Profit from monopoly can create unfair advantage to Postal Service if it were to enter electronic transfer business

So what we have to weaken is "Profit from monopoly in first class mail will give advantage to Postal Service"

(A) Says outright that if Postal Service enter electronic transfer, it will no longer make profit on first-class biz -> thus, no fund to grant its unfair advantage
(B) Strengthen the conclusion that Postal Service will still have monopoly over electronic transfer -> giving it profit to keep its unfair advantage
(C) Introduce new method of sending but does not address electronic transfer
(D) Says no matter how large you are in electronic transfer, you will not have competitive edge -> this might actually strengthen the conclusion that if Postal Service come in with additional profit to fuel the electronic business -> It will have competitive edge over other players
(E) Says electronic is only good for first class mail -> but gives nothing about whether profit can create unfair comp.

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In the United States, the Postal Service has a monopoly on first-class  [#permalink]

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New post 06 Jun 2019, 23:41
I cannot understand the line "since it's electronic transmission service could not be subsidized from the profits of monopoly".
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In the United States, the Postal Service has a monopoly on first-class   [#permalink] 06 Jun 2019, 23:41
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