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# Fish currently costs about the same at seafood stores throughout Eastv

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VP
Status: Learning
Joined: 20 Dec 2015
Posts: 1107
Location: India
Concentration: Operations, Marketing
GMAT 1: 670 Q48 V36
GRE 1: 314 Q157 V157
GPA: 3.4
WE: Manufacturing and Production (Manufacturing)
Re: Fish currently costs about the same at seafood stores throughout Eastv [#permalink]

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02 Jul 2017, 23:53
Lets see what the argument means .
When all the prices from wholesalers to business are same, then the cost store within and outside the city have same profitability .
But a new tax is implemented in city that will reduce the cost of doing business in city and because of that profit margins of the stores located in the city will rise .
Here is the catch if the stores in city reduce the price of the fish then they will not be maintaining high profit margins .
Hence E is the only answer.
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SVP
Joined: 12 Dec 2016
Posts: 1863
Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
Re: Fish currently costs about the same at seafood stores throughout Eastv [#permalink]

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03 Jul 2017, 04:15
arvind910619 wrote:
Lets see what the argument means .
When all the prices from wholesalers to business are same, then the cost store within and outside the city have same profitability .
But a new tax is implemented in city that will reduce the cost of doing business in city and because of that profit margins of the stores located in the city will rise .
Here is the catch if the stores in city reduce the price of the fish then they will not be maintaining high profit margins .
Hence E is the only answer.

I think you make some mistakes here, the stores IN CITY have to reduce the price of the fish to maintain high profit margins.
Intern
Joined: 14 Sep 2017
Posts: 33
Location: Italy
Re: Fish currently costs about the same at seafood stores throughout Eastv [#permalink]

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01 Nov 2017, 12:48
Can someone explain me why A is incorrect?? If we know that new tax depends on the location of business within the city or outside the city, shouldn't we know where are located the wholesalers to determine how will be stores margins?
SVP
Joined: 12 Dec 2016
Posts: 1863
Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
Re: Fish currently costs about the same at seafood stores throughout Eastv [#permalink]

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01 Nov 2017, 14:18
Fedemaravilla wrote:
Can someone explain me why A is incorrect?? If we know that new tax depends on the location of business within the city or outside the city, shouldn't we know where are located the wholesalers to determine how will be stores margins?

E is much better than A.
A depends on many assumptions, and A do not make sure that fish stores outside city won't buy fishes from whosalers in the city. Only E can show a difference between stores in the city and those outside the city. Also, A does not concern with the price, so A may not concern with the profit margin as well.
Re: Fish currently costs about the same at seafood stores throughout Eastv   [#permalink] 01 Nov 2017, 14:18

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