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Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.
The above statements, if true, indicate that Airline A has made which of the following conclusions?
  • a)
    The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
  • b)
    The Federal Aviation Administration will approve Airline A's specific proposal.
  • c)
    The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
  • d)
    There are no safer ways in which Airline A can increase revenues.
  • e)
    Passenger safety is less important than increasing revenue.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Due to high jet fuel costs, airline carriers are looking for new ways ...
Only two pieces of information are given about Airline A's standing room "seats" proposal. First, that it is geared toward increasing revenue in order to counteract declining profits. And second, that, since the proposal relates to passenger safety, it must be approved by the Federal Aviation Administration. Airline A must have concluded that the cost of implementation of its proposal is less than the revenue that the new seats will generate.
(A) Since Airline A knows that its proposal would have to comply with safety standards, it must have concluded that the cost of compliance is worth it. In other words, the only way for Airline A to achieve its goal of increasing profit is to implement ideas that will generate more revenue than they cost. Airline A must therefore have concluded that the standing room only "seats" meet this criteria.
(B) The statements in the passage imply nothing about whether Airline A believes that the Federal Aviation Administration will approve the proposal. Although Airline A must believe that the proposal has a chance of being approved (otherwise it's unlikely to have proposed it), the airline might have proposed its specific plan knowing that it might not be approved or, that it might have to be changed in certain ways.
(C) Airline A's goal is simply to "counteract declining profits" caused by the high cost of jet fuel. This does not mean, however, that the proposal must fully mitigate the cost of jet fuel. As long as the proposal increases revenue without a corollary increase in cost, it will in some way (even if it's relatively small) counteract declining profits.
(D) The passage does not mention any other ways that Airline A has considered increasing revenue. Therefore, it is impossible to conclude anything about Airline A's perception of its standing room "seats" proposal to any other ideas.
(E) The statements in the passage do not address Airline A's view regarding the safety of the standing room only "seats". It is very possible that Airline A views its proposal as safe and sees no conflict between passenger safety and increasing revenue, much less that it has made any determination about the relative importance of these two issues.
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Due to high jet fuel costs, airline carriers are looking for new ways ...
Only two pieces of information are given about Airline A's standing room "seats" proposal. First, that it is geared toward increasing revenue in order to counteract declining profits. And second, that, since the proposal relates to passenger safety, it must be approved by the Federal Aviation Administration. Airline A must have concluded that the cost of implementation of its proposal is less than the revenue that the new seats will generate.
(A) Since Airline A knows that its proposal would have to comply with safety standards, it must have concluded that the cost of compliance is worth it. In other words, the only way for Airline A to achieve its goal of increasing profit is to implement ideas that will generate more revenue than they cost. Airline A must therefore have concluded that the standing room only "seats" meet this criteria.
(B) The statements in the passage imply nothing about whether Airline A believes that the Federal Aviation Administration will approve the proposal. Although Airline A must believe that the proposal has a chance of being approved (otherwise it's unlikely to have proposed it), the airline might have proposed its specific plan knowing that it might not be approved or, that it might have to be changed in certain ways.
(C) Airline A's goal is simply to "counteract declining profits" caused by the high cost of jet fuel. This does not mean, however, that the proposal must fully mitigate the cost of jet fuel. As long as the proposal increases revenue without a corollary increase in cost, it will in some way (even if it's relatively small) counteract declining profits.
(D) The passage does not mention any other ways that Airline A has considered increasing revenue. Therefore, it is impossible to conclude anything about Airline A's perception of its standing room "seats" proposal to any other ideas.
(E) The statements in the passage do not address Airline A's view regarding the safety of the standing room only "seats". It is very possible that Airline A views its proposal as safe and sees no conflict between passenger safety and increasing revenue, much less that it has made any determination about the relative importance of these two issues.
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Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.The above statements, if true, indicate that Airline A has made which of the following conclusions?a)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.b)The Federal Aviation Administration will approve Airline As specific proposal.c)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.d)There are no safer ways in which Airline A can increase revenues.e)Passenger safety is less important than increasing revenue.Correct answer is option 'A'. Can you explain this answer?
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Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.The above statements, if true, indicate that Airline A has made which of the following conclusions?a)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.b)The Federal Aviation Administration will approve Airline As specific proposal.c)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.d)There are no safer ways in which Airline A can increase revenues.e)Passenger safety is less important than increasing revenue.Correct answer is option 'A'. 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 Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.The above statements, if true, indicate that Airline A has made which of the following conclusions?a)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.b)The Federal Aviation Administration will approve Airline As specific proposal.c)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.d)There are no safer ways in which Airline A can increase revenues.e)Passenger safety is less important than increasing revenue.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.The above statements, if true, indicate that Airline A has made which of the following conclusions?a)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.b)The Federal Aviation Administration will approve Airline As specific proposal.c)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.d)There are no safer ways in which Airline A can increase revenues.e)Passenger safety is less important than increasing revenue.Correct answer is option 'A'. Can you explain this answer?.
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This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.The above statements, if true, indicate that Airline A has made which of the following conclusions?a)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.b)The Federal Aviation Administration will approve Airline As specific proposal.c)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.d)There are no safer ways in which Airline A can increase revenues.e)Passenger safety is less important than increasing revenue.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.The above statements, if true, indicate that Airline A has made which of the following conclusions?a)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.b)The Federal Aviation Administration will approve Airline As specific proposal.c)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.d)There are no safer ways in which Airline A can increase revenues.e)Passenger safety is less important than increasing revenue.Correct answer is option 'A'. 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This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.The above statements, if true, indicate that Airline A has made which of the following conclusions?a)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.b)The Federal Aviation Administration will approve Airline As specific proposal.c)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.d)There are no safer ways in which Airline A can increase revenues.e)Passenger safety is less important than increasing revenue.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.The above statements, if true, indicate that Airline A has made which of the following conclusions?a)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.b)The Federal Aviation Administration will approve Airline As specific proposal.c)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.d)There are no safer ways in which Airline A can increase revenues.e)Passenger safety is less important than increasing revenue.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.The above statements, if true, indicate that Airline A has made which of the following conclusions?a)The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.b)The Federal Aviation Administration will approve Airline As specific proposal.c)The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.d)There are no safer ways in which Airline A can increase revenues.e)Passenger safety is less important than increasing revenue.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice GMAT tests.
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