I believe...the correct answer should include something that would caste doubt on ticket prices AND market share...Can't seem to find an option that covers both...thru POE - I will pick A. What is the OA?

if these are the types of questions i need to get right in order to score high... im doomed... because i dont see it

I agree wholly with money9111. I feel the same.

Nez...i would choose option C.

The question talks about an oversight in the debate which is "The executives at NorthCoast Airlines recently debated whether the costs associated with constructing, deploying, and maintaining these types of systems for their small regional carrier were warranted." So, Option C seems correct.

OA Please...

Hey guys,

The correct answer here is C. We're essentially asked to weaken the executives' plan to assess their cost-benefit analysis, and their plan is to "assume that ticket prices and market share remain the same".

Choice C provides a likelihood that market share will not remain the same; if one of the benefits of the project is that it will attract more customers, then it's likely that market share will increase as a result. Because choice C shows a specific discrepancy with their plan, it correctly answers this question.

Choice A is tempting...particularly to business students who are well-versed in the concept of time-value-of-money. But it's out of scope. The executives' plan does not assume a particular inflation rate, so it doesn't expose a particular weakness in their logic.

One thing noteworthy about this question: it employs a common GMAT CR theme of having a correct answer choice that runs counter to your natural inclination. Your instinct is probably in this case to warn the executives of false exuberance - one would assume that they're looking for reasons to believe in the new project, and that you'd want to play the role of naysayer in this "weaken" question. Choice C does the opposite - it says that they may be being too cautious, so it doesn't quite vibe with your first inclination. The GMAT loves to insert those tricks in harder questions to get you to focus specifically on the scope of the argument given, and not to allow personal tendencies to get in the way.

Thanks Brian, really appreciate the response

The OA is C everyone. Thanks for all of the responses, I have to stop picking answers that deal with inflation...lol

Read

The executives at NorthCoast Airlines recently debated whether the costs associated with constructing, deploying, and maintaining these types of systems for their small regional carrier were warranted

Which of the following, assuming it is true, constitutes the most serious oversight in the debate among the NorthCoast executives?

Analyze

argument: executives don't think costs merit the projected returns..hence ding the plan....

correct answer must either introduce a method to reduce costs that the executives did not account for (economies of scale perhaps) OR show new revenue streams that the executives overlooked....

Basically correct answer will sideline the executives methods of calculating project viability...it should take a stand against the executives..no half measures

Examine

A) The future value of the money to be invested in the new systems cannot be determined without accurate projections of the rate of inflation - this answer does not take sides....no spine, could go either way - REJECT

B) The costs associated with these new systems are so prohibitive that even large commercial carriers do not recover their investment for many years - this one kinda supports the executives that even large commercial carriers (with economies of scale) are unlikely to benefit....exact opposite of what we need - REJECT with a smile (coz correct answer is now likely to talk about ways to improve revenue)

C) These new customer-facing services can be expected to improve customer satisfaction and attract significant numbers of new customers. - attract significant new customers -----> more revenue------> egg on face of executives

D) The initial costs of development for any outline computerized system cannot be known with great certainty - useless to destroy the executives' argument - REJECT

E) Online ticketing systems make pricing transparent to an airline's current and prospective customers - must evoke a "so what response" - REJECT

No ambiguity, C is a clear winner