GMAT Exam > GMAT Questions > In Varisland, when a subscriber of one teleco...
Start Learning for Free
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, 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?
- a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.
- b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.
- c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.
- d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.
- e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
In Varisland, when a subscriber of one telecom operator calls a subscr...
Pre-Thinking
Conclusion Clarification
The author concludes that 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.
Pre-Thinking Approach
Let’s see how we can make the conclusion less believable. To do so, we will look at the logical structure, focusing on linkage 1.
Linkage#1 – (reference logical structure)
- Weakener – What if increasing the connection somehow deteriorates the financials of the new TOs? Such a situation is possible if the hike in CF increases the net outflow of money from the new TOs. Since as per the definition of CF, it is the charge paid when a telecom subscriber calls another telecom subscriber of different company, more the number of outgoing calls (to other companies) from a telecom company, more is the outflow of funds.
- Instance: For the new TOs the number of outgoing calls will be significantly higher than the number of incoming calls.
With this understanding in mind, let’s move on to the answer choice analysis.
Answer Choices
A
The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.
Incorrect - Irrelevant
The information given in this choice doesn’t suggest that an increase in connection fee will have a negative effect. It can only imply that an increase or decrease in connection fee might not have much effect on the financials since it is such a small component of revenues. Therefore, this is not the correct choice.
B
In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.
Incorrect - Irrelevant
The question stem talks about a situation only when the recommendation is implemented; if the regulator does something opposite, it is not relevant to the question.
C
The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.
Incorrect - Irrelevant
Very similar to option A. It doesn’t suggest that an increase in connection fee will have a negative impact on the financials of the new TOs.
D
Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.
Correct
This is similar to our pre-thinking answer. If the number of outgoing calls is expected to be greater than the number of incoming calls, increasing the connection fee will increase the losses of the new telecom companies and thus will negatively impact their financial health.
E
Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.
Incorrect - Irrelevant
This choice talks about an impact on the existing TOs that is not related to any adverse financial impact on new TOs.
|
Explore Courses for GMAT exam
|
|
Top Courses for GMATView all
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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer?
Question Description
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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about 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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer?.
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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about 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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer?.
Solutions for 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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT.
Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
Here you can find the meaning of 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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for 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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of 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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice 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, 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?a)The connection fee is such a small component of revenues of any telecom companies that no company could survive by just relying on this.b)In the past, whenever regulator has been advised a course of action by an outside agency, the regulator has taken a completely opposite action step.c)The financial health of a telecom company is determined by the total profits generated by the company, irrespective of the source of revenues.d)Due to highly competitive call rates, the number of outgoing calls from an average user of a new telecom company is expected to be much greater than the number of incoming calls.e)Increase in the connection fee will not be welcomed by many existing telecom operators as they will have to pass on the charges levied on them by the new operators to their customers.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice GMAT tests.
|
|
Explore Courses for GMAT exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup