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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?
Verified 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 ...
Understanding Airline A's Conclusion
Airline A's proposal to introduce standing room only "seats" is driven by the need to increase revenues amidst rising jet fuel costs. The conclusion drawn by Airline A can be analyzed as follows:
Revenue Generation vs. Safety Costs
- Airline A believes that adding standing room only "seats" will allow them to accommodate more passengers.
- The essential consideration is whether the additional revenue from these seats will outweigh the costs associated with meeting safety standards mandated by the Federal Aviation Administration (FAA).
Why Option A is Correct
- Cost vs. Revenue: The correct conclusion is that the addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards. This conclusion is pivotal as it justifies the proposal's financial viability.
- Safety Approval Requirement: Since the proposal relates to passenger safety, it must receive FAA approval. Therefore, Airline A is likely confident that the revenues gained will cover the costs of compliance.
Why Other Options are Incorrect
- Option B: It cannot be assumed that the FAA will approve the proposal; it only indicates intent.
- Option C: The statement does not directly compare revenue from standing seats with current jet fuel costs.
- Option D: There is no evidence presented that suggests Airline A has explored other revenue-boosting strategies focused on safety.
- Option E: This option misrepresents the airline's priorities; safety must remain a priority alongside profitability.
In conclusion, Airline A's focus on revenue generation through the proposed standing room only "seats" hinges on the assumption that the financial benefits will surpass any associated costs of safety compliance.
Airline A's proposal to introduce standing room only "seats" is driven by the need to increase revenues amidst rising jet fuel costs. The conclusion drawn by Airline A can be analyzed as follows:
Revenue Generation vs. Safety Costs
- Airline A believes that adding standing room only "seats" will allow them to accommodate more passengers.
- The essential consideration is whether the additional revenue from these seats will outweigh the costs associated with meeting safety standards mandated by the Federal Aviation Administration (FAA).
Why Option A is Correct
- Cost vs. Revenue: The correct conclusion is that the addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards. This conclusion is pivotal as it justifies the proposal's financial viability.
- Safety Approval Requirement: Since the proposal relates to passenger safety, it must receive FAA approval. Therefore, Airline A is likely confident that the revenues gained will cover the costs of compliance.
Why Other Options are Incorrect
- Option B: It cannot be assumed that the FAA will approve the proposal; it only indicates intent.
- Option C: The statement does not directly compare revenue from standing seats with current jet fuel costs.
- Option D: There is no evidence presented that suggests Airline A has explored other revenue-boosting strategies focused on safety.
- Option E: This option misrepresents the airline's priorities; safety must remain a priority alongside profitability.
In conclusion, Airline A's focus on revenue generation through the proposed standing room only "seats" hinges on the assumption that the financial benefits will surpass any associated costs of safety compliance.
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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? for GMAT 2025 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 2025 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?.
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 2025 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 2025 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?.
Solutions 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? in English & in Hindi are available as part of our courses for GMAT.
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Here you can find the meaning 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? 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'. Can you explain this answer?, a detailed solution 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? 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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