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In many surveys, American consumers have expressed a [#permalink]
02 Sep 2005, 08:31
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In many surveys, American consumers have expressed a willingness to spend up to 10 percent more for products that are ecologically sound. Encouraged by such surveys, Bleach-O Corporation promoted a new laundry detergent, Bleach-O Green, as safer for the environment. Bleach-O Green cost 5 percent more than typical detergents. After one year, Bleach-O Green had failed to capture a significant share of the detergent market and was withdrawn from sale.
Which of the following questions is LEAST likely to be relevant in determining the reasons for the failure of Bleach-O Green?
(A) How effective as a detergent was Bleach-O Green?
(B) How many other detergents on the market were promoted as safe for the environment?
(C) How much more did Bleach-O Green cost to manufacture than ordinary detergents?
(D) To what extent did consumers accept the validity of Bleach-O Green advertised and promoted to consumers?
(E) How effectively was Bleach-O Green advertised and promoted to consumers?
The burden of maintaining the U.S. highway system falls disproportionately on the trucking industry. Trucks represent only about 10 percent of the vehicles on U.S. roads. Yet road use taxes assessed on trucks amount to almost half the taxes paid for highway upkeep and repair.
Which of the following, if true, would most weaken the argument above?
(A) The trucking industry has enjoyed record after-tax profits in three of the past four years.
(B) Because of their weight, trucks cause over 50 percent of the damage sustained by highway surfaces each year.
(C) Without an economically viable trucking industry, the cost of goods in the United States would rise significantly.
(D) Road use taxes paid by trucking companies have decreased by 3 percent over the past five years.
(E) Due to years of neglect, U.S. highways today are badly in need of major repairs and rebuilding.
C, but only because it is least relevant, but still i believe it is relevant... B
Yes, you're right. I was thinking about C when I attempted this question. It does have relevance because if the manufacturing cost is way higher compaed to ordinary detergent, and the extra 5% selling price is not enough to generate a profit, then that is good reason to pull it off the shelf. But in light of the other choices, this is probably the weakest reason as we need to make an extra assumption here (that is, the manufacturing cost > selling price)
Check out this awesome article about Anderson on Poets Quants, http://poetsandquants.com/2015/01/02/uclas-anderson-school-morphs-into-a-friendly-tech-hub/ . Anderson is a great place! Sorry for the lack of updates recently. I...