Well, this one is easy. But one has to read carefully.
Quote:
The city council has concluded, however, that if the cargo railway were to offer subway transport, the transport system would have an unfair advantage over the city's existing bus routes, because Southern Haul Cargo's subway system could be subsidized by the profits of their monopoly on cargo transport.
Option C - Does the city believe that Southern Haul Cargo Railway makes a profit on cargo transport? - Yes, they do.
Answer
C