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Author Message
Intern
Joined: 02 Aug 2019
Posts: 8
Location: India
Concentration: Finance, General Management
GMAT 1: 520 Q41 V20
GPA: 2.8
WE: Research (Mutual Funds and Brokerage)

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06 Dec 2019, 05:32
Q - The following appeared as part of an annual report sent to stockholders by Olympic Foods, a processor of frozen
foods:
"Over time, the costs of processing go down because as organizations learn how to do things better, they become
more efficient. In color film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day
service in 1970 to 20 cents for a one-day service in 1984. The same principle applies to the processing of food.
And since Olympic Foods will soon celebrate its 25th birthday, we can expect that our long experience will enable
us to minimize costs and thus maximize profits."
Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning
and the use of evidence in the argument. For example, you may need to consider what questionable assumptions
underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can
also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would
make it more logically sound, and what, if anything, would help you better evaluate its conclusion.

Answer - The argument mentioned is not convincing and is based on a false line of reasoning. It mentions a general convention at the beginning of the argument to support the conclusion but this line of reason can also support an alternative conclusion.

The argument states that by using efficient methods, an organisation can lower its price, as the cost for processing goes down significantly, but it makes a false conclusion that this effect can maximize profit. Further, it cites the example of a color film processing firm to justify that it is true for all organizations irrespective of the field it operates.

First weakener is the usage of a comparison of a color-film processing industry to a food-processing industry. It is true that efficient methods lead to a reduction of time and costs, but it is also true that people are more inclined towards quality when it comes to food and so this cannot be true for the food processing industry. For example- A person can shift companies in the color-film processing industry to get better and faster service but may consider the decrease in the price of the food item as degradation of quality and may shift to various competitors.

The second weakener is that an industry can optimize production costs and maximize sales but may fail to attract consumers to buy their product and may suffer losses even after lowering its prices. It is not guaranteed that a person will shift to buying food items from the company just on the basis of lowered prices and the company may suffer losses for the same.

So, to conclude to judge this argument we need more data about the food processing industry to understand whether people shift to new products when a company lowers the price in the market.
Sloan MIT School Moderator
Joined: 17 Jul 2018
Posts: 782

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06 Dec 2019, 12:11
1
videepsinghal wrote:
Q - The following appeared as part of an annual report sent to stockholders by Olympic Foods, a processor of frozen
foods:
"Over time, the costs of processing go down because as organizations learn how to do things better, they become
more efficient. In color film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day
service in 1970 to 20 cents for a one-day service in 1984. The same principle applies to the processing of food.
And since Olympic Foods will soon celebrate its 25th birthday, we can expect that our long experience will enable
us to minimize costs and thus maximize profits."
Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning
and the use of evidence in the argument. For example, you may need to consider what questionable assumptions
underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can
also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would
make it more logically sound, and what, if anything, would help you better evaluate its conclusion.

Answer - The argument mentioned is not convincing and is based on a false line of reasoning. It mentions a general convention at the beginning of the argument to support the conclusion but this line of reason can also support an alternative conclusion.

The argument states that by using efficient methods, an organisation can lower its price, as the cost for processing goes down significantly, but it makes a false conclusion that this effect can maximize profit. Further, it cites the example of a color film processing firm to justify that it is true for all organizations irrespective of the field it operates.

First weakener is the usage of a comparison of a color-film processing industry to a food-processing industry. It is true that efficient methods lead to a reduction of time and costs, but it is also true that people are more inclined towards quality when it comes to food and so this cannot be true for the food processing industry. For example- A person can shift companies in the color-film processing industry to get better and faster service but may consider the decrease in the price of the food item as degradation of quality and may shift to various competitors.

The second weakener is that an industry can optimize production costs and maximize sales but may fail to attract consumers to buy their product and may suffer losses even after lowering its prices. It is not guaranteed that a person will shift to buying food items from the company just on the basis of lowered prices and the company may suffer losses for the same.

So, to conclude to judge this argument we need more data about the food processing industry to understand whether people shift to new products when a company lowers the price in the market.

too short
give suggestions
give examples
elaborate the critique
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Intern
Joined: 30 Sep 2019
Posts: 10

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06 Dec 2019, 12:25
1
I agree with Business Conqueror on all items. Yes it is too short but also too simple. I mean you must spend some more time in making sentences a little more complex and not too short.
General GMAT Forum Moderator
Joined: 15 Jan 2018
Posts: 732
Concentration: General Management, Finance
GMAT 1: 720 Q50 V37

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06 Dec 2019, 21:20
1
videepsinghal - Your essay attempt has several deal-breaking problems: overall length, structure, structural/directional keywords, grammar. For now, I would recommend that you follow the chineseburned AWA template that has helped thousands of test-takers achieve a high AWA score.

How to get 6.0 AWA on GMAT: https://gmatclub.com/forum/how-to-get-6 ... 64327.html
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