Local phone companies have monopolies on phone service within their areas. Cable television can be transmitted via the wires that are already in place and owned by the phone companies. Cable television companies argue that if the telephone companies were to offer cable service, these telephone companies would have an unfair advantage, because their cable transmissions could be subsidized by the profits of their monopolies on phone service. On the basis of the information provided in the passage above, which of the following questions can be answered?

Question

Examsnet · Accepted Answer

Correct Answer is : Do the cable companies believe that the local phone companies make a profit on phone service?

GMAT Verbal Reasoning Practice Test 3