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# GamesWorld Inc. is a video game manufacturing company that is very clo

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Manager
Joined: 21 May 2017
Posts: 67
Location: India
GamesWorld Inc. is a video game manufacturing company that is very clo  [#permalink]

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02 Oct 2018, 22:06
1
1
00:00

Difficulty:

45% (medium)

Question Stats:

61% (01:39) correct 39% (01:34) wrong based on 96 sessions

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GamesWorld Inc. is a video game manufacturing company that is very close to meeting its customer expectations. It follows a subscription model under which every video game that it produces is accessible to every customer. Its goal is to exceed customer satisfaction. In its survey, last year, it found out that most of its customers prefer E10+ rated games more than E, EC, T, and A rated games put together.

Based on the information above, which of the following actions is GamesWorld most likely to take in near future to meet its goals?

A. Since the profits generated by E, EC, T, and A rated games are higher than E10+ rated games, GamesWorld is not likely to change its product mix.
B. Since the number of games GamesWorld produces annually is constant, it is likely to start manufacturing a higher proportion E10+ rated games in the near future.
C. For a similar price, GamesWorld will create a new subscription model that will allow customers who just like E10+ games to access the same.
D. GamesWorld will likely stop manufacturing E, EC, T and A rated games for some time.
E. To produce more games, GamesWorld will try and divert some research and development money from E10+ games to E, EC, T, and A rated games.
Intern
Joined: 30 Jan 2018
Posts: 17
Re: GamesWorld Inc. is a video game manufacturing company that is very clo  [#permalink]

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02 Oct 2018, 23:06
zac123 wrote:
GamesWorld Inc. is a video game manufacturing company that is very close to meeting its customer expectations. It follows a subscription model under which every video game that it produces is accessible to every customer. Its goal is to exceed customer satisfaction. In its survey, last year, it found out that most of its customers prefer E10+ rated games more than E, EC, T, and A rated games put together.

Based on the information above, which of the following actions is GamesWorld most likely to take in near future to meet its goals?

A. Since the profits generated by E, EC, T, and A rated games are higher than E10+ rated games, GamesWorld is not likely to change its product mix.
B. Since the number of games GamesWorld produces annually is constant, it is likely to start manufacturing a higher proportion E10+ rated games in the near future.
C. For a similar price, GamesWorld will create a new subscription model that will allow customers who just like E10+ games to access the same.
D. GamesWorld will likely stop manufacturing E, EC, T and A rated games for some time.
E. To produce more games, GamesWorld will try and divert some research and development money from E10+ games to E, EC, T, and A rated games.

Hi,

Here we can easily eliminate option A,D and E.
and C is tempting but argument clearly states that " a subscription model under which every video game that it produces is accessible to every customer" , So there is no fun in providing a new subscription model for E10+ game. Hence option B is correct.

Hit kudos if you agree with my reasoning.
Intern
Joined: 13 Aug 2018
Posts: 4
Re: GamesWorld Inc. is a video game manufacturing company that is very clo  [#permalink]

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07 Oct 2018, 23:19
For option B, How can we say that they produce games which are constant in production? If anyone could explain me.

Thanks.
examPAL Representative
Joined: 07 Dec 2017
Posts: 885
Re: GamesWorld Inc. is a video game manufacturing company that is very clo  [#permalink]

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08 Oct 2018, 00:40
We can solve this question using the

Logical

approach.

we know two things:
1) the company's goal is increasing customer satisfaction
2) customers want more e10 games

The clear logical conclusion is: the company should proceed more e10 games. this is exactly what B tells us.
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Re: GamesWorld Inc. is a video game manufacturing company that is very clo   [#permalink] 08 Oct 2018, 00:40
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