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22 Nov 2016, 08:41
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chismooo
Option A: The argument is about the revenue of the company, not the profit. If the company offers $50 per month and the competitor offers $ 40 a month, customers will go to the competitor; they would not buy from the company. So the revenue of the company will decrease. Option A is correct.
Option C: Customer usage increases implies that the cost to the company will increase, i.e. the profits will decrease, but the argument is not about profits, it is about revenue. Hence option C is incorrect.
25 Dec 2016, 20:25
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prakashgmat2016
Your first query:
This is a weakening question, not an inference question.
The conclusion is: In order to increase revenues, a cell-phone company has decided to change its fee structure.
The question is that why the plan may not succeed or in other other words, why the conclusion could be wrong?
This is a common structure weakening question.
Your second query:
Please read this: in-order-to-increase-revenues-a-cell-phone-company-has-153147.html#p1756331
09 Nov 2017, 03:59
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I fell for D, making calculations based on 100 present consumers , \(1/5\) th use in excess of 1000 minutes leading to revenue loss.
But most important part we are forgetting is that, we put into calculations only the present consumers, what if the company will be able to attract more people to the plan and offset the loss above.? We never know.
Option A, captures these future consumers by offering 40$ per month unlimited option. Obviously, future consumers will be attracted to rival company. And it stands best choice.
But most important part we are forgetting is that, we put into calculations only the present consumers, what if the company will be able to attract more people to the plan and offset the loss above.? We never know.
Option A, captures these future consumers by offering 40$ per month unlimited option. Obviously, future consumers will be attracted to rival company. And it stands best choice.
