Local phone companies have monopolies on phone service : GMAT Critical Reasoning (CR)
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# Local phone companies have monopolies on phone service

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Director
Joined: 24 Oct 2005
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Local phone companies have monopolies on phone service [#permalink]

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24 Mar 2006, 07:56
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Local phone companies have monopolies on phone service within their areas. Cable television can be transmitted via the wires that are already in place and owned by the phone companies. Cable television companies argue that if the telephone companies were to offer cable service, these telephone companies would have an unfair advantage, because their cable transmissions could be subsidized by the profits of their monopolies on phone service

On the basis of the information provided in the passage above, which of the following questions can be answered?
(A) Are phone companies as efficient as cable companies in providing reliable and inexpensive service?
(B) If phone companies were allowed to provide cable service, would they want to do so?
(C) Do the cable companies believe that the local phone companies make a profit on phone service?
(D) Are local phone companies forbidden to offer cable service?
(E) Is it expected that phone companies will have a monopoly on cable service?

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Senior Manager
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Re: CR telephone [#permalink]

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24 Mar 2006, 10:33
C.

remgeo wrote:
Local phone companies have monopolies on phone service within their areas. Cable television can be transmitted via the wires that are already in place and owned by the phone companies. Cable television companies argue that if the telephone companies were to offer cable service, these telephone companies would have an unfair advantage, because their cable transmissions could be subsidized by the profits of their monopolies on phone service

On the basis of the information provided in the passage above, which of the following questions can be answered?
(A) Are phone companies as efficient as cable companies in providing reliable and inexpensive service?
(B) If phone companies were allowed to provide cable service, would they want to do so?
(C) Do the cable companies believe that the local phone companies make a profit on phone service? the answer is Yes

(D) Are local phone companies forbidden to offer cable service?
(E) Is it expected that phone companies will have a monopoly on cable service?

Please explain your ans
Director
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24 Mar 2006, 11:02
Oh yes it is C...
Director
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24 Mar 2006, 14:46
^ C ^

The answer is hidden here:

Cable television companies argue that if the telephone companies were to offer cable service, these telephone companies would have an unfair advantage, because their cable transmissions could be subsidized by the profits of their monopolies on phone service
Manager
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24 Mar 2006, 23:14
Agree with C
Director
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28 Mar 2006, 05:02
The OA is C. Good one guys
Manager
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28 Mar 2006, 05:46
Thats a great one ... i love the "find the detail" CR
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28 Mar 2006, 05:52
One more for 'C'.
28 Mar 2006, 05:52
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# Local phone companies have monopolies on phone service

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