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The Canjica Bus Company recently merged with Pastel Bus Lines, Inc. As a result, the town of Hominy is now served by only one bus company. Citizens of Hominy can therefore expect bus fares to increase soon.
Which of the following statements, if true, would most seriously weaken the claim made above?
(A) The amount of debt a company accumulates in order to buy out another company is a major determinant of the prices it charges once the buyout has taken place.
(B) The buses in Hominy face increasingly stiff competition from commuter rail service.
(C) Prior to the merger, Canjica had consistently provided riders with faster, more efficient service than that available from Pastel.
(D) Hominy schoolchildren are permitted to ride for free when traveling to and from school.
(E) In the nearby town of Piñon, fares increased by 50 percent after a similar merger took place between that town's two bus lines.
Which of the following statements, if true, would most seriously weaken the claim made above?
(A) The amount of debt a company accumulates in order to buy out another company is a major determinant of the prices it charges once the buyout has taken place.
(B) The buses in Hominy face increasingly stiff competition from commuter rail service.
(C) Prior to the merger, Canjica had consistently provided riders with faster, more efficient service than that available from Pastel.
(D) Hominy schoolchildren are permitted to ride for free when traveling to and from school.
(E) In the nearby town of Piñon, fares increased by 50 percent after a similar merger took place between that town's two bus lines.
18 Apr 2022, 09:37
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The Canjica Bus Company recently merged with Pastel Bus Lines, Inc. As a result, the town of Hominy is now served by only one bus company. Citizens of Hominy can therefore expect bus fares to increase soon.
Which of the following statements, if true, would most seriously weaken the claim made above?
(A) The amount of debt a company accumulates in order to buy out another company is a major determinant of the prices it charges once the buyout has taken place.
(B) The buses in Hominy face increasingly stiff competition from commuter rail service.
(C) Prior to the merger, Canjica had consistently provided riders with faster, more efficient service than that available from Pastel.
(D) Hominy schoolchildren are permitted to ride for free when traveling to and from school.
(E) In the nearby town of Piñon, fares increased by 50 percent after a similar merger took place between that town's two bus lines.
Which of the following statements, if true, would most seriously weaken the claim made above?
(A) The amount of debt a company accumulates in order to buy out another company is a major determinant of the prices it charges once the buyout has taken place.
(B) The buses in Hominy face increasingly stiff competition from commuter rail service.
(C) Prior to the merger, Canjica had consistently provided riders with faster, more efficient service than that available from Pastel.
(D) Hominy schoolchildren are permitted to ride for free when traveling to and from school.
(E) In the nearby town of Piñon, fares increased by 50 percent after a similar merger took place between that town's two bus lines.
IMO, correct answer is B.
A) Even if the resulting company accumulated debt to finance the merger (no info is given), this statement would strengthen the claim.
B) Despite the merger (and consequent monopoly), competition is tough. This will make increasing bus fares difficult. It weakens the claim.
C) Fails to weaken the claim.
D) Can't see how this affects the claim in any way.
E) Reverse logic
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