The First Banking Group’s decision to invest in an electronic network for transferring funds was based on a cost advantage over a nonelectronic system of about ten dollars per transaction in using an electronic system. Executives reasoned further that the system would give them an advantage over competitors.
Which of the following, if it is a realistic possibility, most seriously weakens the executives’ projection of an advantage over competitors?

Question

Examsnet · Accepted Answer

Correct Answer is :  Competitors will for the same reasons install electronic systems, and the resulting overcapacity will lead to mutually damaging price wars.

GMAT Verbal Reasoning Practice Test 5