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# A small orchard specializing in citrus fruits has been

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A small orchard specializing in citrus fruits has been [#permalink]

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06 Aug 2009, 07:18
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A small orchard specializing in citrus fruits has been receiving fewer orders for oranges in the off season. Orchard owners expect demand to pick up in the coming weeks as harvest begins, but they are concerned about a neighboring orchard nearly three times their size. The neighboring orchard has announced plans to sell cases of oranges for 20% less than regular price in order to jump-start the season by attracting new business.

Which of the following, if true, points to the most serious flaw of the small orchard's plan to attract business by matching the prices of the competing orchard?

a The small orchard has a dozen customers under contract to purchase the first oranges of the season and may anger them by not extending the discount to them.

b The small orchard does not have time to advertise its oranges at lower prices.

c The small orchard will reduce the number of oranges in each case to minimize losses incurred by matching prices.

d The large orchard has a larger inventory and is more able to take losses on initially discounted oranges.

e The large orchard will target a different market than the small orchard.
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06 Aug 2009, 07:21
IMO B...the orchard will raise the prices but wont advertise.
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06 Aug 2009, 08:26
sanoasis wrote:
IMO B...the orchard will raise the prices but wont advertise.

try again man
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06 Aug 2009, 08:46
man this is confusing. am clueless
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06 Aug 2009, 08:49
I think it should be D.

Large orchard can take losses, but small one cannot. So it should go for a different way, rather than discounting the prices.
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06 Aug 2009, 09:01
From what i understand of Flaw questions; one need not bring in any outside information to refute conclusion but instead explain the shortfall given in the stimulus itself.. . .like in a weaken question you are supposed to find the additional information which if true would destroy the argument, whereas in flaw question, you know the evidence doesn’t support the conclusion very well at all, and its up to you to explain why

so i would second sdrandom1 for D . . as all the other option are bringing in outside information like, different market, reducing oranges, customers under contract, advertising etc. . .only D is apparent in the stimulus in form of "three times their size" indicating more oranges so more ability to take discount.

Hope my explanation is ok. . and answer is D
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06 Aug 2009, 09:03
sdrandom1 wrote:
I think it should be D.

Large orchard can take losses, but small one cannot. So it should go for a different way, rather than discounting the prices.

If the large orchad has more inventory, good for them! but this is not about the large orchad but about the small one...
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06 Aug 2009, 09:08
noboru wrote:
sdrandom1 wrote:
I think it should be D.

Large orchard can take losses, but small one cannot. So it should go for a different way, rather than discounting the prices.

If the large orchad has more inventory, good for them! but this is not about the large orchad but about the small one...

so its clear that answer is not B or D. pls tell OA then. . . this CR doesn't seem to be my cup of Tea i never get it right
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06 Aug 2009, 09:23
E for me.
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06 Aug 2009, 09:32
sudeep wrote:
E for me.

why do you think so!
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06 Aug 2009, 09:33
sudeep wrote:
E for me.

I was with E too, but I was wrong...as you are...
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06 Aug 2009, 09:40
I still feel the E is the biggest flaw!
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06 Aug 2009, 10:58
It's D for me.
Plz post the OA
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06 Aug 2009, 10:59
noboru, whats the OA then??? Also can you please post the OA for your other CR question with subject - "Country X" too. I have been waiting to hear from you on both these CR questions...
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06 Aug 2009, 11:57
sdrandom1 wrote:
noboru, whats the OA then??? Also can you please post the OA for your other CR question with subject - "Country X" too. I have been waiting to hear from you on both these CR questions...

You got it: OA is D.

Situation: A small orchard desires to compete with a larger neighboring orchard.

Reasoning: Which point reveals the most serious flaw in the small orchard's plan? It can be determined from the passage that the large orchard has three times the inventory of the small orchard, and that they are looking to attract new business. It can also be inferred from the passage that the owners of the large orchard are confident that they are able to sell oranges at a discount and still remain solvent.

a The concern of the orchards is in attracting new business, not satisfying existing customers. Additionally, customers under contract have likely already agreed to a non-discount price.

b This item may be problematic, but does not address the concerns of the passage as a whole.

c This approach is not a flaw in the plan, but a possible, potentially unethical, solution.

d The large orchard's greater inventory will give them a flexibility that will outlast the small orchard. The small orchard could run out of stock before the large orchard has sold even a third of its oranges.

e This item makes it sound as if the two orchards will not actually be in competition, but does not address the soundness of the small orchard's plan.
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06 Aug 2009, 22:37
noboru wrote:
sdrandom1 wrote:
I think it should be D.

Large orchard can take losses, but small one cannot. So it should go for a different way, rather than discounting the prices.

If the large orchad has more inventory, good for them! but this is not about the large orchad but about the small one...

noboru wrote:
Target760 wrote:
From what i understand of Flaw questions; one need not bring in any outside information to refute conclusion but instead explain the shortfall given in the stimulus itself.. . .like in a weaken question you are supposed to find the additional information which if true would destroy the argument, whereas in flaw question, you know the evidence doesn’t support the conclusion very well at all, and its up to you to explain why

so i would second sdrandom1 for D . . as all the other option are bringing in outside information like, different market, reducing oranges, customers under contract, advertising etc. . .only D is apparent in the stimulus in form of "three times their size" indicating more oranges so more ability to take discount.

Hope my explanation is ok. . and answer is D

Hey noboru. I am confused. If answer was D then why did you not say yes to it when sdrandom1 and myself had given it as an answer choice.
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07 Aug 2009, 02:54
Target760 wrote:
noboru wrote:
sdrandom1 wrote:
I think it should be D.

Large orchard can take losses, but small one cannot. So it should go for a different way, rather than discounting the prices.

If the large orchad has more inventory, good for them! but this is not about the large orchad but about the small one...

noboru wrote:
Target760 wrote:
From what i understand of Flaw questions; one need not bring in any outside information to refute conclusion but instead explain the shortfall given in the stimulus itself.. . .like in a weaken question you are supposed to find the additional information which if true would destroy the argument, whereas in flaw question, you know the evidence doesn’t support the conclusion very well at all, and its up to you to explain why

so i would second sdrandom1 for D . . as all the other option are bringing in outside information like, different market, reducing oranges, customers under contract, advertising etc. . .only D is apparent in the stimulus in form of "three times their size" indicating more oranges so more ability to take discount.

Hope my explanation is ok. . and answer is D

Hey noboru. I am confused. If answer was D then why did you not say yes to it when sdrandom1 and myself had given it as an answer choice.

Just challenging you and trying to refuting your argument.
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07 Aug 2009, 03:05
D for me too
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07 Aug 2009, 06:02
D it is

Key element of the problem is Size of the firm/orchard and how price/discount tends to effect them.
Easy way to tackle this problem is asking the question

What impact with the small orchard have if it apes the big orchard which will be different

D comes a clear winner
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07 Aug 2009, 11:07
haha yeah i thought it was D, then read your replies noburu, and i went back but couldn't see any other possible answers...nice one.
Re: A small orchard   [#permalink] 07 Aug 2009, 11:07

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