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17 Jun 2022, 01:30
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Difficulty:
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93% (00:57) correct
7%
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Earlier this year, the government raised the minimum wage for teenagers. Since the staff in Pizzarella pizza parlor consists almost entirely of teenagers, the owners of Pizzarella faced higher expenses. However, Pizzarella's profit has increased by 20 percent.
Which of the following, if true, could best resolve this paradox?
A. More and more teenagers are interested in being employed by Pizzarella.
B. The prices of tomatoes, flour, oil and cheese - the main ingredients in Pizzarella's pizzas - have also risen sharply.
C. Pizzarella had a scandalous disagreement with the health department which was publicized, damaging its client base.
D. With the teenage minimum wage raised, more teenagers - Pizzarella's chief target market - could afford to dine there.
E. Pizzarella's sign fell off during a thunderstorm and had to be repaired.
Which of the following, if true, could best resolve this paradox?
A. More and more teenagers are interested in being employed by Pizzarella.
B. The prices of tomatoes, flour, oil and cheese - the main ingredients in Pizzarella's pizzas - have also risen sharply.
C. Pizzarella had a scandalous disagreement with the health department which was publicized, damaging its client base.
D. With the teenage minimum wage raised, more teenagers - Pizzarella's chief target market - could afford to dine there.
E. Pizzarella's sign fell off during a thunderstorm and had to be repaired.
17 Jun 2022, 02:02
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IMO D
Profit = Sales - Costs
Premis - Costs increased
Since option D talks about increased sales - With the teenage minimum wage raised, more teenagers - Pizzarella's chief target market - could afford to dine there.
Profit = Sales - Costs
Premis - Costs increased
Since option D talks about increased sales - With the teenage minimum wage raised, more teenagers - Pizzarella's chief target market - could afford to dine there.
17 Jun 2022, 07:39
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Bunuel
Earlier this year, the government raised the minimum wage for teenagers. Since the staff in Pizzarella pizza parlor consists almost entirely of teenagers, the owners of Pizzarella faced higher expenses. However, Pizzarella's profit has increased by 20 percent.
Which of the following, if true, could best resolve this paradox?
A. More and more teenagers are interested in being employed by Pizzarella.
B. The prices of tomatoes, flour, oil and cheese - the main ingredients in Pizzarella's pizzas - have also risen sharply.
C. Pizzarella had a scandalous disagreement with the health department which was publicized, damaging its client base.
D. With the teenage minimum wage raised, more teenagers - Pizzarella's chief target market - could afford to dine there.
E. Pizzarella's sign fell off during a thunderstorm and had to be repaired.
Which of the following, if true, could best resolve this paradox?
A. More and more teenagers are interested in being employed by Pizzarella.
B. The prices of tomatoes, flour, oil and cheese - the main ingredients in Pizzarella's pizzas - have also risen sharply.
C. Pizzarella had a scandalous disagreement with the health department which was publicized, damaging its client base.
D. With the teenage minimum wage raised, more teenagers - Pizzarella's chief target market - could afford to dine there.
E. Pizzarella's sign fell off during a thunderstorm and had to be repaired.
We are dealing with paradox. The paradox is that the expenses rose because of higher minimum wages for the teenagers (employees). Option D tells us that revenue may increase as the chief target customers, teenagers, could afford to dine in the pizza parlor. Profit = Revenue - Cost - Expense
Although expenses increase, revenue increases and thereby profits increase.
Option D
