A series of glitches within the satellite infrastructure of a cellular

Question

A series of glitches within the satellite infrastructure of a cellular phone service company has resulted in service interruptions and several complaints from the company's clients. The company has responded by offering its clients free months of service and other rebates in order to keep its clients from changing to another service provider. Because of this new policy, the company's profits are destined to keep falling for years to come.

Which of the following, if true, taken together with the information above, best supports the conclusion that the company's financial situation will only worsen as long as this new policy is in place?

A) Clients who experience technical difficulties with their cellular phones are unlikely to recommend the service to friends and business associates.

B) Since satellite technology and construction is still a relatively new industry, it's unwise to assume that every satellite will always work perfectly

C) The money that the company passes on as rebates to its clients whose service has been interrupted had been previously budgeted to be spent on repairing the satellites.

D) ln order to balance out the lost and forfeited revenue, the company will have to lay off at least 10 percent of its employees.

E) The company has no plans to launch any new satellites anytime soon.

desertEagle · Answer

Argument is
Service interruption and consumer complaing + to prevent consumer from leaving --> rebates offered --> Profits going to keep falling

We need support it.

A) Clients who experience technical difficulties with their cellular phones are unlikely to recommend the service to friends and business associates. ->  argument is about retaining existing customer not gaining new ones --> Wrong

B) Since satellite technology and construction is still a relatively new industry, it's unwise to assume that every satellite will always work perfectly -->  this will weaken as people will think that poor connection is part and parcel of this industry and switching to other service provider wont solve issue --> wrong

C) The money that the company passes on as rebates to its clients whose service has been interrupted had been previously budgeted to be spent on repairing the satellites. -->  If money was to be spent on repairing satellites which would have improved the situation at hand, then the situation is going to continue and company will have to keep doling out money --> profits will keep on dwindling -- > CORRECT answer

D) ln order to balance out the lost and forfeited revenue, the company will have to lay off at least 10 percent of its employees. -->  laying off employees will lead to decrease in cost and hence may increase profits --> It will weaken conclusion --> Wrong

E) The company has no plans to launch any new satellites anytime soon. -->  glitches do not require changing the whole infrastructure. You wont change your new iphone if its sound system goes bad. It simply needs to fix the glitches --> So, there can be many ways to improve the quality --> but still even if they change satellite, the argument is about giving free service and rebates which is causing dwindling profits. --> Thus this is out of scope --> Wrong

A series of glitches within the satellite infrastructure of a cellular

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A series of glitches within the satellite infrastructure of a cellular

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