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Six months or so after getting a video recorder, many early [#permalink]
21 Aug 2006, 21:28
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Six months or so after getting a video recorder, many early buyers apparently lost interest in obtaining videos to watch on it. The trade of businesses selling and renting videos is still buoyant, because the number of homes with video recorders is still growing. But clearly, once the market for video recorders is saturated, businesses distributing videos face hard times.
Which of the following, if true, would most seriously weaken the conclusion above?
(A) The market for video recorders would not be considered saturated until there was one in 80 percent of homes.
(B) Among the items handled by video distributors are many films specifically produced as video features.
(C) Few of the early buyers of video recorders raised any complaints about performance aspects of the new product.
(D) The early buyers of a novel product are always people who are quick to acquire novelties, but also often as quick to tire of them.
(E) In a shrinking market, competition always intensifies and marginal businesses fail.
A. We are asked to refute the difficulty that the distributors will face after saturation, not the saturation level (it's not given in the stimulus).
B. We are not told that the buyers lost interest because of lack any homevideo-specific content - there could have been other reasons
C. Again, the stimulus doesn't suggest the technical complains are the cause.
D. That's the right explanation: the behavior of those tech-savyy pioneers who test the new product (videos) of the market is not necessarily indicative of the larger mainstream public tthat will account for most of distrib's income once the saturation level is reached.
E. Irrelevant - there's no mention of a shrinkling market _________________
"Amicus Plato, sed magic amica veritas"
For me the answer is D
Because "many early buyers apparently lost interest" was stated as a trend the VR is experiencing, it clearly implies that sales are generated by the first few months of sales, if compared to the users before.
D "The early buyers of a novel product are always people who are quick to acquire novelties, but also often as quick to tire of them. " clearly states that not everyone follows this trend
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...