Shereen cosmetics sometimes discount the price of its premium eye shadows to retailers for a promotion period when the product is advertised to consumers. Such promotions often result in a dramatic increase in amount of premium eye shadows sold by the manufacturers to retailers. Nevertheless, the manufacturers could often make more profit by not holding the promotions.Which of the following, if true, most strongly supports the claim above about the manufacturers' profit?
Answer(s): D
The best answer is D. According to choice D, the promotion does not bring about increased sales to the consumer, but a hoarding of the product by the retailer. Without the promotion, retailers would eventually buy the same numbers of the product at its full price, therefore, choice D supports the claim.
New home buyers are all financially protected against bankruptcy of the contractor because of a law requiring the contractor to get bank backing to insure all individual investments. An economist argues that this insurance is partly responsible for the high rate of bankruptcies among contractors, since it removes from buyers any financial incentive to find out the financial status of the contractor they are hiring. If buyers were more selective, then contractors would need to be secure in order to compete for buyers.The economist's argument makes which of the following assumptions?
Answer(s): E
The best answer is E. The economist’s assumption is that what he is proposing can be implemented. If those people looking for a contractor are unable to determine which ones are secure against bankruptcy, then buyers do not have the option of being more selective in their choice of contractor.
Which of the following, if true, most seriously weakens the economist's argument?
Answer(s): B
The best answer is B. The argument that bank backing is partially responsible for the high rate of bank failures would be weakened if the bank backing to insure all individual investments also prevented certain contractor bankruptcies. Choice B suggests that it does prevent some bankruptcies and is thus the best answer.
Between 1990 and 1998, occupancy in Branson Hospital averaged 79 percent of capacity, while admission rates remained constant, at an average of 9 admissions per 100 beds per year. Between 1998 and 2002, however, occupancy rates increased to an average of 85 percent of capacity, while admission rates declined to 8 per 100 beds per year.Which of the following conclusions can be most properly drawn from the info given above?
Answer(s): A
The best answer is A. Choice A receives support from the fact stated above: between 1998 and 2002, Branson hospital occupancy rates rose though admission rats decline
American customers expect high quality. When the quality of a manufactured product is raised, it in turn raises customer expectations. A company that believes that the quality of its products is satisfactory will soon discover that its customers are not similarly satisfied. The goal of Sunnybrook Corporation is to meet or exceed customer expectations.Which of the following must be true on the basis of the statements above?
Answer(s): C
The best answer is C. Sunnybrook wishes to meet customer expectations; however, these expectations are always being raised. Whatever the quality of Sunny brook’sproducts, it will be possible to meet their goal only by continually improving their products.
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