PrepTest 27, Section 2, Question 1
Powell: Private waste-removal companies spend 60 percent of what public waste-removal companies spend per customer, yet give their customers at least as good service. Private waste-removal companies, therefore, work more efficiently.
Powell: Private waste-removal companies spend 60 percent of what public waste-removal companies spend per customer, yet give their customers at least as good service. Private waste-removal companies, therefore, work more efficiently.
Freeman: Your conclusion is unwarranted. Different customers have different waste-removal needs. Since private companies, unlike their public counterparts, can select which customers to serve, they choose to exclude the potential customers whom they judge to be the most costly to serve.
Powell: Private waste-removal companies spend 60 percent of what public waste-removal companies spend per customer, yet give their customers at least as good service. Private waste-removal companies, therefore, work more efficiently.
Freeman: Your conclusion is unwarranted. Different customers have different waste-removal needs. Since private companies, unlike their public counterparts, can select which customers to serve, they choose to exclude the potential customers whom they judge to be the most costly to serve.
Powell: Private waste-removal companies spend 60 percent of what public waste-removal companies spend per customer, yet give their customers at least as good service. Private waste-removal companies, therefore, work more efficiently.
The issue in dispute between Powell and Freeman is the
accuracy of the figure of 60 percent with regard to the difference in service costs between private and public waste-removal companies
reason private waste-removal companies are able to offer service comparable to that offered by public ones while spending less money per customer
ability of private versus public waste-removal companies to select which customers to serve
likelihood of the local authorities' turning public waste-removal companies into private ones so that the companies can operate with lower service costs than they now incur
relationship between the needs of a waste-removal customer and the amount of money it takes to serve that customer
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