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NorthAir charges low fares for its economy-class seats, but it provides very cramped seating and few amenities. Market research shows that economy passengers would willingly pay more for wider seating and better service, and additional revenue provided by these higher ticket prices would more than cover the additional cost of providing these amenities. Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.


Which of the following, if true, would most help to explain NorthAir's decision in light of its objectives?

  • a)
    None of NorthAir's competitors offers significantly better seating and service to economy-class passengers than NorthAir does.

  • b)
    On many of the routes that NorthAir flies, it is the only airline to offer direct flights.

  • c)
    The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.

  • d)
    Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.

  • e)
    A few of NorthAir's economy-class passengers are satisfied with the service they receive, given the low price they pay.

Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
NorthAir charges low fares for its economy-class seats, but it provide...
(A) Government motor vehicle regulations generally require all cars, whether old or new, to be inspected for emission levels prior to registration.
This option focuses on emission level inspections rather than major engine repairs. It doesn't directly address why a higher percentage of cars from the 1970s needed major engine repairs compared to the cars from the 1960s. Therefore, it does not help explain the discrepancy.
(B) Owners of new cars tend to drive their cars more carefully than do owners of old cars.
This option suggests that owners of new cars drive more carefully, potentially reducing the likelihood of major engine issues. However, it doesn't explain why the repair percentage for the cars from the 1970s is higher compared to the cars from the 1960s. Therefore, it does not help explain the discrepancy.
(C) The older a car is, the more likely it is to be discarded for scrap rather than repaired when major engine work is needed to keep the car in operation.
This option is the most relevant to explaining the discrepancy. It suggests that the cars built in the 1960s are more likely to be scrapped rather than repaired when major engine work is required, while the cars from the 1970s are still in use and require repairs. This difference in the fate of the cars can account for the higher repair percentage for the cars from the 1970s.
(D) The cars that the National Motor Company built in the 1970s incorporated simplified engine designs that made the engines less complicated than those of earlier models.
This option provides a potential reason for the repair discrepancy, suggesting that the engine designs of the 1970s cars were less complicated, leading to fewer major engine issues compared to the cars from the 1960s. However, it doesn't directly explain why the repair percentage for the 1970s cars is higher. Therefore, it does not strongly help explain the discrepancy.
(E) Many of the repairs that were performed on the cars that the National Motor Company built in the 1960s could have been avoided if periodic routine maintenance had been performed.
This option suggests that a significant portion of repairs on the cars from the 1960s could have been avoided through routine maintenance. However, it doesn't address why the repair percentage for the 1970s cars is higher. Therefore, it does not help explain the discrepancy.
In summary, option (C) provides the most direct and relevant explanation for the discrepancy in repair percentages between the cars built in the 1970s and the cars built in the 1960s.
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NorthAir charges low fares for its economy-class seats, but it provides very cramped seating and few amenities. Market research shows that economy passengers would willingly pay more for wider seating and better service, and additional revenue provided by these higher ticket prices would more than cover the additional cost of providing these amenities. Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.Which of the following, if true, would most help to explain NorthAirs decision in light of its objectives?a)None of NorthAirs competitors offers significantly better seating and service to economy-class passengers than NorthAir does.b)On many of the routes that NorthAir flies, it is the only airline to offer direct flights.c)The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.d)Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.e)A few of NorthAirs economy-class passengers are satisfied with the service they receive, given the low price they pay.Correct answer is option 'C'. Can you explain this answer?
Question Description
NorthAir charges low fares for its economy-class seats, but it provides very cramped seating and few amenities. Market research shows that economy passengers would willingly pay more for wider seating and better service, and additional revenue provided by these higher ticket prices would more than cover the additional cost of providing these amenities. Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.Which of the following, if true, would most help to explain NorthAirs decision in light of its objectives?a)None of NorthAirs competitors offers significantly better seating and service to economy-class passengers than NorthAir does.b)On many of the routes that NorthAir flies, it is the only airline to offer direct flights.c)The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.d)Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.e)A few of NorthAirs economy-class passengers are satisfied with the service they receive, given the low price they pay.Correct answer is option 'C'. 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 NorthAir charges low fares for its economy-class seats, but it provides very cramped seating and few amenities. Market research shows that economy passengers would willingly pay more for wider seating and better service, and additional revenue provided by these higher ticket prices would more than cover the additional cost of providing these amenities. Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.Which of the following, if true, would most help to explain NorthAirs decision in light of its objectives?a)None of NorthAirs competitors offers significantly better seating and service to economy-class passengers than NorthAir does.b)On many of the routes that NorthAir flies, it is the only airline to offer direct flights.c)The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.d)Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.e)A few of NorthAirs economy-class passengers are satisfied with the service they receive, given the low price they pay.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for NorthAir charges low fares for its economy-class seats, but it provides very cramped seating and few amenities. Market research shows that economy passengers would willingly pay more for wider seating and better service, and additional revenue provided by these higher ticket prices would more than cover the additional cost of providing these amenities. Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.Which of the following, if true, would most help to explain NorthAirs decision in light of its objectives?a)None of NorthAirs competitors offers significantly better seating and service to economy-class passengers than NorthAir does.b)On many of the routes that NorthAir flies, it is the only airline to offer direct flights.c)The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.d)Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.e)A few of NorthAirs economy-class passengers are satisfied with the service they receive, given the low price they pay.Correct answer is option 'C'. Can you explain this answer?.
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Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.Which of the following, if true, would most help to explain NorthAirs decision in light of its objectives?a)None of NorthAirs competitors offers significantly better seating and service to economy-class passengers than NorthAir does.b)On many of the routes that NorthAir flies, it is the only airline to offer direct flights.c)The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.d)Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.e)A few of NorthAirs economy-class passengers are satisfied with the service they receive, given the low price they pay.Correct answer is option 'C'. 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Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.Which of the following, if true, would most help to explain NorthAirs decision in light of its objectives?a)None of NorthAirs competitors offers significantly better seating and service to economy-class passengers than NorthAir does.b)On many of the routes that NorthAir flies, it is the only airline to offer direct flights.c)The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.d)Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.e)A few of NorthAirs economy-class passengers are satisfied with the service they receive, given the low price they pay.Correct answer is option 'C'. 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Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.Which of the following, if true, would most help to explain NorthAirs decision in light of its objectives?a)None of NorthAirs competitors offers significantly better seating and service to economy-class passengers than NorthAir does.b)On many of the routes that NorthAir flies, it is the only airline to offer direct flights.c)The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.d)Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.e)A few of NorthAirs economy-class passengers are satisfied with the service they receive, given the low price they pay.Correct answer is option 'C'. 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Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.Which of the following, if true, would most help to explain NorthAirs decision in light of its objectives?a)None of NorthAirs competitors offers significantly better seating and service to economy-class passengers than NorthAir does.b)On many of the routes that NorthAir flies, it is the only airline to offer direct flights.c)The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.d)Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.e)A few of NorthAirs economy-class passengers are satisfied with the service they receive, given the low price they pay.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice GMAT tests.
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