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27 May 2022, 03:01
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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:
65%
(hard)
Question Stats:
58% (02:02) correct
42%
(02:12)
wrong
based on 309
sessions
History
Date
Time
Result
Not Attempted Yet
In Varisland, when a subscriber of one telecom operator calls a subscriber of a different telecom operator, the latter’s telecom company charges a small connection fee to the originating operator, a fee stipulated by the regulator and same for every operator. Almost all the new telecom operators are enticing customers by charging much lower call rates than charged by the existing operators. Since the connection fee is one of the sources of revenue for new companies, an increase in the fee will significantly improve the financials of the new operators and enable them to compete better in the market.
Which of the following statements is an assumption made by the author?
A. The regulator will most probably agree with the author’s recommended course of action
B. To improve the financials of the new companies, all the possible sources of revenues should be utilized in the best manner possible.
C. One of the goals of the regulator is to make the telecom market highly competitive, which will ensure consumer welfare.
D. For the new telecom operators, the connection fee does not form an insignificant proportion of their revenues
E. New companies will not have to pay increased connection fee to the existing companies
Which of the following statements is an assumption made by the author?
A. The regulator will most probably agree with the author’s recommended course of action
B. To improve the financials of the new companies, all the possible sources of revenues should be utilized in the best manner possible.
C. One of the goals of the regulator is to make the telecom market highly competitive, which will ensure consumer welfare.
D. For the new telecom operators, the connection fee does not form an insignificant proportion of their revenues
E. New companies will not have to pay increased connection fee to the existing companies
02 Jun 2022, 08:50
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A. The regulator will most probably agree with the author’s recommended course of action Incorrect
cant be an assumption
B. To improve the financials of the new companies, all the possible sources of revenues should be utilized in the best manner possible. Incorrect
weakens conclusion, increase fee is not enough to make a competitive market
C. One of the goals of the regulator is to make the telecom market highly competitive, which will ensure consumer welfare. Correct
possible assumption,
D. For the new telecom operators, the connection fee does not form an insignificant proportion of their revenues Incorrect
so that action will not be helpful for new companies
E. New companies will not have to pay increased connection fee to the existing companies Incorrect
contradicts with argument
cant be an assumption
B. To improve the financials of the new companies, all the possible sources of revenues should be utilized in the best manner possible. Incorrect
weakens conclusion, increase fee is not enough to make a competitive market
C. One of the goals of the regulator is to make the telecom market highly competitive, which will ensure consumer welfare. Correct
possible assumption,
D. For the new telecom operators, the connection fee does not form an insignificant proportion of their revenues Incorrect
so that action will not be helpful for new companies
E. New companies will not have to pay increased connection fee to the existing companies Incorrect
contradicts with argument
04 Jun 2022, 11:20
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Although I see why "D" is correct, I am unable to eliminate E. Could anyone help?
