A library Currently has only Coin-Operated Photocopy Machines, which Cost 10 cents Per Copy.

Question: A library currently has only coin-operated photocopy machines, which cost 10 cents per copy. Library administrators are planning to refit most of those machines with card readers. The library will sell prepaid copy cards that allow users to make 50 copies at 9 cents per copy. Administrators believe that, despite the convenience of copy cards and their lower per-copy cost, the number of copies made in the library will be essentially unchanged after the refit.

On the assumption that administrators' assessment is correct, which of the following predictions about the effect of the refit is most strongly supported by the information given?

A) Library patrons will only purchase a copy card on days when they need to make 50 or more copies.
B) No library patrons will increase their usage of the library's photocopy machines once the refit has been made.
C) If most of the copy cards sold in the library are used to their full capacity, the number of people using the library's photocopy machines over a given period will fall.
D) Revenues from photocopying will decrease unless most library patrons choose to use the remaining coin-operated machines in preference to the card-reader equipped ones.
E) Revenues from photocopying will increase if copy cards that are purchased are, on average, used to significantly less than 90 percent of their capacity.

A Library Currently has Only Coin Operated Photocopy Machines – is a topic from GMAT Critical Reasoning section. This particular GMAT Critical Reasoning topic has been taken from the book ‘ GMAT Official Guide Verbal Review, 2022’. This is assumption is an implied hypothesis type of question. So we are looking for something that is implied in the argument. In case it is wrong or maybe disable the statement.. GMAT critical reasoning tests the logical and analytical skills of the candidates. This topic requires candidates to find the strengths and weaknesses of the argument, or find the logical flaw in the argument.  The GMAT CR section contains 10 -13 GMAT critical reasoning questions out of 36 GMAT verbal questions.

Answer: E

Explanation: 

Let's go through the assumptions that suit the most with the given argument:

A) Library patrons will only purchase a copy card on days when they need to make 50 or more copies.

Here in option A, we can see that if they want to make 50 copies or more, they will need to buy the card. This way it would be cheaper. Hence option A is not correct.

B) No library patrons will increase their usage of the library's photocopy machines once the refit has been made.

Option B is not necessary as the number of photocopies remains same.

C) If most of the copy cards sold in the library are used to their full capacity, the number of people using the library's photocopy machines over a given period will fall.

Option C is incomplete as it does not contain the reason for the machine failure.

D) Revenues from photocopying will decrease unless most library patrons choose to use the remaining coin-operated machines in preference to the card-reader equipped ones.

In option D, we see the words ‘most’ which can be considered. As all the coin machines are steady in keeping the revenue. Hence option D is insufficient.

E) Revenues from photocopying will increase if copy cards that are purchased are, on average, used to significantly less than 90 percent of their capacity.

Option E can be considered in case people purchase copy cards they cannot use completely. Hence they're capacity if make 50 copies seem less than 90% of the capacity. People are paying around 450c for each copy. Hence the revenue will increase with the passage of time. Hence, option E is the correct choice.

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