Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized for You

we will pick new questions that match your level based on your Timer History

Track Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

On Monday, Daisy s Lemonade Stand sold lemonade at 20 cents [#permalink]

Show Tags

09 Jun 2008, 20:58

00:00

A

B

C

D

E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct
0% (00:00) wrong based on 0 sessions

HideShow timer Statistics

On Monday, Daisy’s Lemonade Stand sold lemonade at 20 cents per cup. The Lemon Shack sold lemonade at 30 cents per cup. At the end of the day, Daisy’s Lemonade Stand and the Lemon Shack reported identical revenues and identical profits.

The statements above best support which of the following assertions?

A) On Monday, Daisy’s Lemonade Stand sold fewer cups of lemonade than did the Lemon Shack. B) The Lemon Shack sells higher quality lemonade than does Daisy’s Lemonade Stand. C) On Monday, Daisy’s Lemonade Stand and the Lemon Shack incurred identical costs to run their businesses. D) In general, lemonade consumers prefer the lemonade at Daisy’s Lemonade Stand to the Lemonade at the Lemon Shack. E) The Lemon Shack would not increase its revenues by lowering its prices.

Why couldn't the answer be D? If Daisy's lemonade is cheaper than Lemon Shack's and they both had similar revenues, then more people bought Daisys.

Here the passage talks about identical profits along with identical revenue

Both can have identical profits only when their costs incurred are same

Hence the answer c) ... is that the OA ?

It cannot be D , cos the consumers buying from lemon shack obviously prefer that lemonade over daisies .. so we cant generalise for all the consumers ( I guess if they mentioned that the majority prefers daisies lemonade then c) would have sounded a bit more appropriate).... had the option c) not been there ... d) would have seemed the best fir answer

On Monday, Daisy’s Lemonade Stand sold lemonade at 20 cents per cup. The Lemon Shack sold lemonade at 30 cents per cup. At the end of the day, Daisy’s Lemonade Stand and the Lemon Shack reported identical revenues and identical profits.

The statements above best support which of the following assertions?

A) On Monday, Daisy’s Lemonade Stand sold fewer cups of lemonade than did the Lemon Shack. B) The Lemon Shack sells higher quality lemonade than does Daisy’s Lemonade Stand. C) On Monday, Daisy’s Lemonade Stand and the Lemon Shack incurred identical costs to run their businesses. D) In general, lemonade consumers prefer the lemonade at Daisy’s Lemonade Stand to the Lemonade at the Lemon Shack. E) The Lemon Shack would not increase its revenues by lowering its prices.

Why couldn't the answer be D? If Daisy's lemonade is cheaper than Lemon Shack's and they both had similar revenues, then more people bought Daisys.

It should be C (though E too seems alright) At the end of the day, Daisy’s Lemonade Stand and the Lemon Shack reported identical revenues and identical profits.

On Monday, Daisy’s Lemonade Stand sold lemonade at 20 cents per cup. The Lemon Shack sold lemonade at 30 cents per cup. At the end of the day, Daisy’s Lemonade Stand and the Lemon Shack reported identical revenues and identical profits.

The statements above best support which of the following assertions?

A) On Monday, Daisy’s Lemonade Stand sold fewer cups of lemonade than did the Lemon Shack. (the CR stem does not point out anything like that - so this choice is irrelevant here) B) The Lemon Shack sells higher quality lemonade than does Daisy’s Lemonade Stand. (the CR stem does not point out anything like that - so this choice is irrelevant here) C) On Monday, Daisy’s Lemonade Stand and the Lemon Shack incurred identical costs to run their businesses. - correct answer choice D) In general, lemonade consumers prefer the lemonade at Daisy’s Lemonade Stand to the Lemonade at the Lemon Shack. (again the CR stem does not point out anything like that - so we dont really know whether consumers actually prefer the lemonade at Daisy’s Lemonade Stand to the Lemonade at the Lemon Shack) E) The Lemon Shack would not increase its revenues by lowering its prices. (there is nothing in the stem that supports this)

Why couldn't the answer be D? If Daisy's lemonade is cheaper than Lemon Shack's and they both had similar revenues, then more people bought Daisys.

IMO C is the answer for this one. i just got the answer by POE.

MBA Admission Calculator Officially Launched After 2 years of effort and over 1,000 hours of work, I have finally launched my MBA Admission Calculator . The calculator uses the...

Final decisions are in: Berkeley: Denied with interview Tepper: Waitlisted with interview Rotman: Admitted with scholarship (withdrawn) Random French School: Admitted to MSc in Management with scholarship (...

The London Business School Admits Weekend officially kicked off on Saturday morning with registrations and breakfast. We received a carry bag, name tags, schedules and an MBA2018 tee at...