Similar GMAT Doubts

• Passage 2One recent example of industrial hyper growth has taken place in t... morehe recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases requir e) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?

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• Experia Inc., a pioneer in online retailing in the cosmetics business, sell... mores all its products only through its website. While evaluating its various marketing channels, the company discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on whether the customer came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.Which of the following most strongly undermines the ability of the companys plan to increase its profits?

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• Company X currently owes $200,000 on a business loan. Company Y currently o... morewes $410,000 on a business loan. Both companies repay their loans at a fi xed dollar amount per year that includes both interest and principle. If each company repays its loan at its fi xed dollar amount per year, in three years the companies will owe the same amount. After three years, Company Y will owe less than Company X until the loans are paid off.Q. In the table below, identify the fi xed dollar annual repayment amounts for each company that together meet the repayment projections given above. Select only one option in each column.

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• In the Kan film festival, 50 movies were presented. 3/5 of the movies are a... morection movies and 4/5 is science fiction movies. How many of the movies were science fiction action movies?

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• In Varisland, when a subscriber of one telecom operator calls a subscriber ... moreof a different telecom operator, the latters 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, the regulator should increase the connection fee, improving the financials of the new telecom operators and thereby enabling them to better compete in the market.Which of the following statements provides the strongest reason to suggest that the recommendation of the author would have an effect opposite to the one envisaged?

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