GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 18 Mar 2019, 16:51

Close

GMAT Club Daily Prep

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.

Close

Request Expert Reply

Confirm Cancel

Companies in the country of Kollontay can sell semiconductor

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

 
SVP
SVP
User avatar
Joined: 06 Sep 2013
Posts: 1677
Concentration: Finance
GMAT ToolKit User
Companies in the country of Kollontay can sell semiconductor  [#permalink]

Show Tags

New post 14 Oct 2013, 08:48
3
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

74% (01:56) correct 26% (02:05) wrong based on 249 sessions

HideShow timer Statistics

Companies in the country of Kollontay can sell semiconductors in the country of Valdivia at a price that is below the cost to Valdivian companies of producing them. To help those Valdivian companies, the Valdivian legislature plans to set a minimum selling price in Valdivia for semiconductors manufactured in Kollontay that is ten percent greater than the average production costs for companies in Valdivia.

Which of the following, if true, most seriously threatens the success of the plan?

(A) The annual rate of inflation in Kollontay is expected to exceed ten percent within the next year.
(B) Valdivia is not the only country where companies in Kollontay currently sell semiconductors.
(C) Some Valdivian companies that sell semiconductors have announced that they plan to decrease their price for semiconductors.
(D) The government of Kollontoy will also set a minimum price for selling semiconductors in that country.
(E) Emerging companies in countries other than Kollontay will still be able to sell semiconductors in Valdivia at a price below the cost to Valdivian companies to manufacture them.
Current Student
User avatar
P
Status: Chasing my MBB Dream!
Joined: 29 Aug 2012
Posts: 1112
Location: United States (DC)
WE: General Management (Aerospace and Defense)
GMAT ToolKit User Premium Member Reviews Badge
Re: Companies in the country of Kollontay can sell semiconductor  [#permalink]

Show Tags

New post 14 Oct 2013, 08:57
1
jlgdr wrote:
Companies in the country of Kollontay can sell semiconductors in the country of Valdivia at a price that is below the cost to Valdivian companies of producing them. To help those Valdivian companies, the Valdivian legislature plans to set a minimum selling price in Valdivia for semiconductors manufactured in Kollontay that is ten percent greater than the average production costs for companies in Valdivia.

Which of the following, if true, most seriously threatens the success of the plan?

(A) The annual rate of inflation in Kollontay is expected to exceed ten percent within the next year.
(B) Valdivia is not the only country where companies in Kollontay currently sell semiconductors.
(C) Some Valdivian companies that sell semiconductors have announced that they plan to decrease their price for semiconductors.
(D) The government of Kollontoy will also set a minimum price for selling semiconductors in that country.
(E) Emerging companies in countries other than Kollontay will still be able to sell semiconductors in Valdivia at a price below the cost to Valdivian companies to manufacture them.



A, B and D are out of scope.

C- Actually Strengthen the Argument.

E- The companies will continue to suffer competition from companies from other countries that are not in plan- Correctly weakens- So this is CORRECT.
_________________

Become a GMAT Club Premium member to avail lot of discounts

Manager
Manager
avatar
Joined: 22 Apr 2013
Posts: 86
Location: India
Concentration: Finance
GMAT 1: 660 Q48 V33
Re: Companies in the country of Kollontay can sell semiconductor  [#permalink]

Show Tags

New post 15 Oct 2013, 04:38
1
(A) The annual rate of inflation in Kollontay is expected to exceed ten percent within the next year.---- Out of scope. Too much too assume how inflation rate impacts price
(B) Valdivia is not the only country where companies in Kollontay currently sell semiconductors.---- Out of scope because we are only concerned about V and K.
(C) Some Valdivian companies that sell semiconductors have announced that they plan to decrease their price for semiconductors.---- If the companies decrease the price, then the plan will be a success. Because now perhaps the public will opt for Semiconductors of V instead of K. Opposite of what we need.
(D) The government of Kollontoy will also set a minimum price for selling semiconductors in that country.---- Out of scope. We are only concerned about what happens in V and not K.
(E) Emerging companies in countries other than Kollontay will still be able to sell semiconductors in Valdivia at a price below the cost to Valdivian companies to manufacture them.---- CORRECT. What if there are other countries like K that sell semiconductors in V? The law is only made for Semiconductors of K. This is exactly what we need.
Intern
Intern
avatar
Joined: 15 Apr 2013
Posts: 47
Concentration: Human Resources, International Business
GMAT 1: 570 Q44 V25
GPA: 3
Re: Companies in the country of Kollontay can sell semiconductor  [#permalink]

Show Tags

New post 15 Oct 2013, 07:35
jlgdr wrote:
Companies in the country of Kollontay can sell semiconductors in the country of Valdivia at a price that is below the cost to Valdivian companies of producing them. To help those Valdivian companies, the Valdivian legislature plans to set a minimum selling price in Valdivia for semiconductors manufactured in Kollontay that is ten percent greater than the average production costs for companies in Valdivia.

Which of the following, if true, most seriously threatens the success of the plan?

(A) The annual rate of inflation in Kollontay is expected to exceed ten percent within the next year.
(B) Valdivia is not the only country where companies in Kollontay currently sell semiconductors.
(C) Some Valdivian companies that sell semiconductors have announced that they plan to decrease their price for semiconductors.
(D) The government of Kollontoy will also set a minimum price for selling semiconductors in that country.
(E) Emerging companies in countries other than Kollontay will still be able to sell semiconductors in Valdivia at a price below the cost to Valdivian companies to manufacture them.


(A) The annual rate of inflation in Kollontay is expected to exceed ten percent within the next year. Incorrect. out of scope.
(B) Valdivia is not the only country where companies in Kollontay currently sell semiconductors. Incorrect. Out of scope.
(C) Some Valdivian companies that sell semiconductors have announced that they plan to decrease their price for semiconductors. Incorrect. Strengthens the argument instead of threatening it.
(D) The government of Kollontoy will also set a minimum price for selling semiconductors in that country. Incorrect. Out of scope.
(E) Emerging companies in countries other than Kollontay will still be able to sell semiconductors in Valdivia at a price below the cost to Valdivian companies to manufacture them. Correct. If this happens Valdivian companies will still face the problem of other players selling semiconductors at a price lower than that of Valdivian companies which does not solve the purpose of helping Valdivian companies.
Manager
Manager
avatar
Joined: 28 Jul 2013
Posts: 70
Location: India
Concentration: Marketing, Strategy
GPA: 3.62
WE: Engineering (Manufacturing)
Re: Companies in the country of Kollontay can sell semiconductor  [#permalink]

Show Tags

New post 17 Jun 2014, 02:12
E it is. E simply brings forth the notion that competition from other players - new ones are as threatening as the old ones
Intern
Intern
avatar
Joined: 01 Jun 2017
Posts: 2
Re: Companies in the country of Kollontay can sell semiconductor  [#permalink]

Show Tags

New post 13 Jul 2017, 08:02
Hi. Can somebody please explain me the argument itself? Why would the V government raise the price of K product if it wants to help its companies? that is ten percent greater than the average production cost for companies in Valdivia
Non-Human User
User avatar
Joined: 01 Oct 2013
Posts: 3705
Premium Member
Re: Companies in the country of Kollontay can sell semiconductor  [#permalink]

Show Tags

New post 25 Feb 2019, 04:51
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

-
April 2018: New Forum dedicated to Verbal Strategies, Guides, and Resources

GMAT Club Bot
Re: Companies in the country of Kollontay can sell semiconductor   [#permalink] 25 Feb 2019, 04:51
Display posts from previous: Sort by

Companies in the country of Kollontay can sell semiconductor

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.