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reto
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ENGRTOMBA2018
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GMAT 1: 750 Q49 V44
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reto
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Retired Moderator
Joined: 29 Apr 2015
Last visit: 24 Aug 2018
Posts: 716
Own Kudos:
Given Kudos: 302
Location: Switzerland
Concentration: Economics, Finance
Schools: LBS MIF '19
WE:Asset Management (Finance: Investment Banking)
Schools: LBS MIF '19
Posts: 716
Kudos: 4,292
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ENGRTOMBA2018
Joined: 20 Mar 2014
Last visit: 01 Dec 2021
Posts: 2,325
Own Kudos:
Given Kudos: 816
Concentration: Finance, Strategy
GMAT 1: 750 Q49 V44
GPA: 3.7
WE:Engineering (Aerospace and Defense)
Products:
GMAT 1: 750 Q49 V44
Posts: 2,325
Kudos: 3,837
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reto
Engr2012
its cost of raising money, whose cost ? Its is not used for persons. The producers of the movie 3003 might be newcomers paying high interest rates(risk capital) for their projects. Hence if this, what is? is true, paying a multi-million salary to just one actor will most probably minimize the profits. To overcome this flaw, the author should collect data about the financial strength of the producers. You could similarly argue that the moviegoers would go to watch the movie, thus helping producers realizing the profit margins they set themselves before signing RG. What if there is a recession all around due to which moviegoers will not be going in the same numbers as before. Instead of the way you have talked about the financial strength of the producer, just talk about profit = revenues-cost and then build upon the aspects of revenues and costs when you talk about the profits for the producers.

Hi Engr2012

Thanks again for this brilliant review. Can not give you 2 kudos unfortunately. For me the producers in the paragraph above refers to a company, if so, I can use "its" as a pronoun can I?

Best rgrds

Usually when you talk about movie production, it is implied that a person or a team of producers work on it and not a company. Also, you start to switch terms between singular producer and plural producers for the same context. This is a bit confusing. 'Its' is very ambiguously used in the sentence. These were the reasons why I marked off the text above in red.

Mentioned below is what I had prepared when I was preparing for AWA and had received a score rating of 5-5.5 from Economist GMAT Tutor. Hope this helps.

In the editorial that appeared in a popular entertainment magazine, the argument's author concludes that the producers of the forthcoming movie, 3003 will maximize their profits as they have asked Robin Good to star in it . This conclusion is based on the fact that the previous movie in which Robin Good starred and was paid a similar amount did very well financially. On a deeper analysis of the argument, it becomes apparent that there are certain relevant details that are missing. The argument stated in such a way, assumes leaps of faith and mistaken assumptions and has logical flaws.

One such flaw is the assumption that the past trends of the movie industry are going to continue in the future. This is a dubious assumption as the reasons for a movie to do well on the box office can be varied and not just dependent on the actor who starred in it. These reasons include things such as actors, theme of the movie (whether it was a popular theme among the cinema goers), total budget of the movie (whether the movie was made on a small budget, leading to a greater profits if the movie does well) etc. An aggregate of these reasons leads to a movie being successful at the box office. The argument would do well if it provides sufficient evidence to support the assertion that the past trends will continue in the future as well specifically for movie 3003.

Moreover, the argument assumes that paying Robin Good the same amount that he was in his previous movie will most probably lead to the same results. The argument fails to take into account the morale of the co-actors of Robin Good in the movie 3003. If an actor is getting paid exorbitant amount of money compared to the rest of the actors, then the movie might still not do well at the box office. The reason for the same is that once his fellow actors come to know that they are getting underpaid, they also might ask for raises in their remunerations, better profit sharing after the movie is released and even better roles for themselves. This would then lead to many other variables added to the whole scenario. Thus, for the argument to be strengthened, proper evidence showing that the overall morale of the movie crew will not suffer because of 1 actor getting paid a lot more than the rest of the crew.

Finally, the argument make the questionable assumption that the last movie of Robin Good had a similar budget as the movie 3003. This is a flawed assumption as the argument lacks any evidence to support this assumption. If the budgets are not comparable, then paying Robin Good may not maximize the profits for the producers of the movie 3003. The argument will be supported further if the editor provides evidence that the budgets are comparable.

In conclusion, the argument provided by the columnist in the popular entertainment magazine is based on some leaps of faith, mistaken assumption and logical flaws. The recommendations mentioned in this essay will aid in alleviating these issues in the argument and will thus strengthen it further. Answers to questions raised above will provide the necessary evidence to make a strong point for the conclusion put forth by the argument.
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