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thapliyalabhi
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The public often protests when an unregulated service

by thapliyalabhi Wed May 29, 2013 10:37 pm

Hi,

I have a doubt in CR question 13 of online question bank. The argument is as below:

The public often protests when an unregulated service industry is found to be corrupt. However, regulation often leads to increased costs for the consumer. Fewer companies survive in a regulated market, leading to decreased competition and higher prices.The public then responds negatively to the increased costs of these services.

The statements above best support which of the following?


(A)Service industries should not be regulated.

(B)The public should not protest unregulated services.

(C)Only unregulated services are subject to public protest.

(D)The public is sometimes the cause of its own complaints.

(E)Decreased competition always leads to increased prices.

Explanation has been given as--The passage describes how public complaints about one issue (corruption in unregulated service industries) can have consequences (increased costs) that lead to new public complaints.

My doubt is whether it has been mentioned in the passage(implicitly/explicitly) that the only way of removing corruption from Unregulated industry is to replace it with regulated one.

They have mentioned the disadvantage of regulation, but nowhere it is clear that regulation is the only way to remove corruption from unregulated industry. Should we assume that corruption free unregulated industry is not possible.

Please clarify this doubt.
RonPurewal
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Re: The public often protests when an unregulated service

by RonPurewal Tue Jun 04, 2013 8:02 pm

don't forget the directions given in the problem: you just have to say which statement is best supported by the given information (NOT which statement is proved or established beyond a doubt by that information).
in this respect, this problem shares a fundamental similarity with "strengthen"/"weaken"/"explain discrepancy" type questions: on those, you'll also be in big trouble if you are trying to prove things.

so, yes, you're right"”there's not a totally rigorous connection here. but, that's the way the gmat works on the vast majority of CR problems; you just have to get used to it.
Willy
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Re: The public often protests when an unregulated service

by Willy Fri Jun 07, 2013 2:10 pm

Is the answer for above question option D? Hope I'm right.
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Re: The public often protests when an unregulated service

by tim Sat Jun 08, 2013 2:56 am

Looks like it to me :)
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