Free GMAT Practice Question

Question 1 of 1
ID: GMAT-VR-RC-017
Section: Verbal Reasoning - Reading Comprehension (RC)
Topic: Social Science
Difficulty level: Hard

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A manufacturer that sells a machine outright stops paying for it the moment the sale closes; every breakdown after that is the buyer's expense. A manufacturer that leases the same machine keeps paying for it for as long as the lease runs. It is tempting to conclude that leasing must therefore produce sturdier equipment. Operators who have run both kinds of fleet report no such gap: leased machines leave service at about the same age as bought ones.

The reason is that a lessor sets out to minimize what a machine costs it over the lease, not to maximize how long the machine lasts. Durability and serviceability pull against each other. A heavy sealed assembly may run for years untouched, but when it fails it has to be replaced whole, and the machine stands idle until the replacement arrives. A light modular assembly fails sooner and more often, yet each failure is cured in an hour by a technician carrying the part in a van. A lessor that also runs the service network will choose the second design, because frequent cheap repairs cost it less than rare expensive ones. Leasing thus pushes the engineers toward repairability rather than longevity, while the age at which a machine is finally retired goes on being fixed by something else entirely: the point at which its parts cease to be manufactured.

Metering the lease alters the calculation without correcting it. A lessor charging by the hour of use rather than the month earns more the more the machine runs, and will now spend to keep it available rather than merely cheap to mend. But an overhaul deep enough to add years to a machine's working life takes it out of service for weeks, and those are weeks in which it earns nothing. Its own pricing therefore argues against the one intervention that would extend the machine's life. Availability improves; longevity does not.

What would change the outcome is a term that pays the lessor for the machine's condition when the lease ends, measured against a standard fixed before it begins. A lessor facing such a term has a reason to spend on the machine's future that outlives its own contract, which is exactly what neither outright sale nor metered leasing supplies.

Sub-Question 1 of 6 (Level: Hard)
The author of the passage would be most likely to attribute the report mentioned at the end of the first paragraph — that leased machines leave service at about the same age as bought ones — to which of the following?
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