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CR Question help needed.

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Senior Manager
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CR Question help needed. [#permalink] New post 11 Feb 2008, 08:37
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
Can someone please provide me the answer with an explanation to this question. It's giving me a right headache. Thanks.


Question 9

Newspaper publishers earn their profits primarily from advertising revenue, and potential advertisers are more likely to advertise in newspapers with a wide circulation—a large number of subscribers and other readers—than with other newspapers. But the circulation of the newspaper that is currently the most profitable one in this city has steadily declined during the last two years, while the circulation of one of its competitors has steadily increased.

Any of the following, if true, would help explain the apparent discrepancy between the two statements above EXCEPT:
(A) Advertisers generally switch from the most widely circulated newspaper to another one only when the other one becomes the most widely circulated newspaper instead.
(B) Advertising rates charged by the most profitable newspaper in the city are significantly higher than those charged by its competitors.
(C) The most profitable newspaper in the city receives revenue from its subscribers as well from advertisers.
(D) The circulation of the most profitable newspaper in the city is still greater than than of any of its competitors.
(E) The number of newspapers competing viably with the most profitable newspaper in the city has increased during the last two years.
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Re: CR Question help needed. [#permalink] New post 11 Feb 2008, 10:06
Should be D

Because The circulation of the most profitable newspaper in the city is still greater than that of any of its competitors, advertisers are still stick to the most profitable one and in turn making it most profitable one.

@Vavali: what is the source of this question?
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Re: CR Question help needed. [#permalink] New post 11 Feb 2008, 10:58
should be E
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Re: CR Question help needed. [#permalink] New post 11 Feb 2008, 12:37
A very tough one. I chose A because A seems the only one that doesn't explain why the most popular newspaper declined in sales, while the competitor's increased.

If A would be wrong, then people would buy the newspaper just because of advertisements, and that cannot be true.

Any other thoughts? And what is the OA?
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Re: CR Question help needed. [#permalink] New post 11 Feb 2008, 13:02
E

the argument is that the profitibility is a function of circulation, i.e., the wider the circulation, the greater the profitibility.
the confusion is that the said newspaper's circulation has gone down but the profitibility is still the highest. We have to identify that statement which DOES NOT explain this discrepancy. The best approach is to identify all the choices that resolve this discrepancy and the one that does not is the answer.

Vavali wrote:
Can someone please provide me the answer with an explanation to this question. It's giving me a right headache. Thanks.


Question 9

Newspaper publishers earn their profits primarily from advertising revenue, and potential advertisers are more likely to advertise in newspapers with a wide circulation—a large number of subscribers and other readers—than with other newspapers. But the circulation of the newspaper that is currently the most profitable one in this city has steadily declined during the last two years, while the circulation of one of its competitors has steadily increased.

Any of the following, if true, would help explain the apparent discrepancy between the two statements above EXCEPT:
(A) Advertisers generally switch from the most widely circulated newspaper to another one only when the other one becomes the most widely circulated newspaper instead. that explains why still the adverstiers have not switched the newspapers.
(B) Advertising rates charged by the most profitable newspaper in the city are significantly higher than those charged by its competitors. high margin can explain high profitibility and low circulation
(C) The most profitable newspaper in the city receives revenue from its subscribers as well from advertisers. this provides alternate source of revenue which could be compensating for the reduced ad. money (D) The circulation of the most profitable newspaper in the city is still greater than than of any of its competitors. this explains too
(E) The number of newspapers competing viably with the most profitable newspaper in the city has increased during the last two years. If this were the case, then both the profitibility and circulation should go down.
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Re: CR Question help needed. [#permalink] New post 11 Feb 2008, 14:35
I second Jay02 for the same reasons. E it is.
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Re: CR Question help needed. [#permalink] New post 11 Feb 2008, 16:53
Vavali wrote:
Can someone please provide me the answer with an explanation to this question. It's giving me a right headache. Thanks.


Question 9

Newspaper publishers earn their profits primarily from advertising revenue, and potential advertisers are more likely to advertise in newspapers with a wide circulation—a large number of subscribers and other readers—than with other newspapers. But the circulation of the newspaper that is currently the most profitable one in this city has steadily declined during the last two years, while the circulation of one of its competitors has steadily increased.

Any of the following, if true, would help explain the apparent discrepancy between the two statements above EXCEPT:
(A) Advertisers generally switch from the most widely circulated newspaper to another one only when the other one becomes the most widely circulated newspaper instead.
(B) Advertising rates charged by the most profitable newspaper in the city are significantly higher than those charged by its competitors.
(C) The most profitable newspaper in the city receives revenue from its subscribers as well from advertisers.
(D) The circulation of the most profitable newspaper in the city is still greater than than of any of its competitors.
(E) The number of newspapers competing viably with the most profitable newspaper in the city has increased during the last two years.


An obvious one to elim. is an answer that says the current newspaper is still the most widely circulated.

A: This is kinda what we predetermined. Could be why they havent switched yet.
B: could be why the rate is declining.
C: another source of $, can explain.
D: Exactly what we predetermined.

E: this actually would weaken the argument. or I guess in this case, make it more confusing.
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Re: CR Question help needed. [#permalink] New post 11 Feb 2008, 17:32
Thanks Guys. It's all clear now. The link I got the questions from is below;

http://www.west.net/~stewart/gmat/qmcriti[9].htm
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Re: CR Question help needed. [#permalink] New post 11 Feb 2008, 20:46
What is the OA?
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Re: CR Question help needed. [#permalink] New post 11 Feb 2008, 22:50
(A) Advertisers generally switch from the most widely circulated newspaper to another one only when the other one becomes the most widely circulated newspaper instead. [Yes. This explains decline in circulation of most profitable newspaper – eliminate it]

(B) Advertising rates charged by the most profitable newspaper in the city are significantly higher than those charged by its competitors. [Yes. This explains decline in circulation of most profitable newspaper – eliminate it]

(C) The most profitable newspaper in the city receives revenue from its subscribers as well from advertisers. [This has no relation to decline – hold it]

(D) The circulation of the most profitable newspaper in the city is still greater than of any of its competitors. [This has no relation to decline – hold it]

(E) The number of newspapers competing viably with the most profitable newspaper in the city has increased during the last two years. [Yes. This explains decline in circulation of most profitable newspaper – eliminate it]


Between C and D – C: applies to any newspaper organization – hold it
D: explains why decline

Answer: Through POE - C
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Re: CR Question help needed. [#permalink] New post 12 Feb 2008, 06:02
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OA is E.
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Re: CR Question help needed.   [#permalink] 12 Feb 2008, 06:02
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