GRE Question of the Day (January 21)

Verbal

A judicial order of a few years ago was intended to foster competition in the telephone industry; it was thought that competition would lead to savings for consumers. Long-distance calls made during the day are now cheaper than they were before the order, but the average residential user's charges for long-distance calls have risen by 25 percent.

Which of the following, if true, would most directly explain the higher long-distance charges incurred by residential users?

(A) More long-distance calls are made by businesses than by residential users.
(B) Telephone companies are expanding their services in the areas of computing and data processing.
(C) Rates for calls made during the evening, the time when most residential users make long-distance calls, have increased.
(D) Increased competition has led telephone companies to expand their budgets for the development of new technology.
(E) Telephone companies must receive approval from regulatory agencies before putting rate changes into effect.

Correct Answer - C - (click and drag your mouse to see the answer)

Question Discussion & Explanation