As
GMATNinja says " GMAC pays 1000-1500$ for each question and hence the sophistication is preserved."
Note: This question isnt poor (POOR ATLEAST HAS SOME POTENTIAL), it is USELESS
Newtronix, a technology company that sells only one product, recently raised prices on its signature product, the ePod. Analysts had predicted that increased prices would translate into higher profits for Newtronics. However, Newtronix saw its profits decline after the price increase.
I'll tell u thw flaws in answer choices
Each of the following, if true, is convincing as an explanation for the decline in Newtronix’s profit EXCEPT
(A) Newtronix’s market share has declined since the price increase.- Market share is judged by two entities : sales AND revenue - so if sales decreased , this option doesnt explain . BUT if revenue decreased then it does.
(B) A recent patent dispute led to the ban of sales of ePods in several countries.
(C) Materials necessary to the production of a necessary component of the ePod recently went up in price.- RECENTLY WENT UP. whereas we are talking about epods already on the market. SO CANNOT EXPLAIN DISCREPANCY
(D) The average customer purchased fewer ePods as a result of the price increase, while the number of customers purchasing ePods remained the same.- THS CHOICE DOES NOT MAKE SENSE
(E) The government imposed higher taxes on Newtronix just prior to the price increase. - PRIOR TO THE PRICE INCREASE. DId the company account for the taxes in its price increase? if it did then does NOT EXPLAIN
@nightblade345 lease remove this question