Television executives recently annonced that advertising : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 21 Feb 2017, 06:31

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Television executives recently annonced that advertising

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Director
Joined: 17 Oct 2005
Posts: 932
Followers: 1

Kudos [?]: 205 [0], given: 0

Television executives recently annonced that advertising [#permalink]

### Show Tags

06 Dec 2005, 01:38
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

Television executives recently annonced that advertising time on television will cost 10 to 15 percent more next fall than it cost last fall. The executives argued that in spite of this increase, advertisers will continue to profit from television advertising, and so advertising time will be no harder to sell next fall than it was last fall.

Which of the following, if true, would most suppor the television executives' argument?

A) Most costs of production and distribution of products typically advertised on television are expected to rise 3 to 7 percent in the next year.

B) The system for rating the size of the audience watching any given televion advertisement will change next fall.

C) Next fall advertising time on television will no longer be available in blocks smller than 30 seconds.

D) The amount of television advertising time purchased by providers of services is increasing, while the amount of such time purchased by providers of products is decreasing

E) A recent survey has shown that the average number of hours people spend watching television is increasing at a rate of 2 percent every two months
If you have any questions
you can ask an expert
New!
Director
Joined: 09 Jul 2005
Posts: 595
Followers: 2

Kudos [?]: 57 [0], given: 0

### Show Tags

06 Dec 2005, 04:07
IMO E.
SVP
Joined: 16 Oct 2003
Posts: 1810
Followers: 5

Kudos [?]: 139 [0], given: 0

### Show Tags

06 Dec 2005, 09:37
E.

more people are watching television means the cost can be spread.
SVP
Joined: 14 Dec 2004
Posts: 1702
Followers: 3

Kudos [?]: 139 [0], given: 0

### Show Tags

06 Dec 2005, 09:49
Though 'E' looks good to me too, let me take different stand...

It's 'C'.

'C' says, slots will be available in blocks of more than 30sec, last fall it was less than 30secs. So if block size is increased & there is also increase in advt. cost, it's balanced...

What is the OA? & OE?
Current Student
Joined: 23 Oct 2005
Posts: 243
Schools: Cranfield SOM
Followers: 2

Kudos [?]: 13 [0], given: 2

### Show Tags

06 Dec 2005, 12:55
vivek123 wrote:
Though 'E' looks good to me too, let me take different stand...

It's 'C'.

'C' says, slots will be available in blocks of more than 30sec, last fall it was less than 30secs. So if block size is increased & there is also increase in advt. cost, it's balanced...

What is the OA? & OE?

But that doesn't necessarily mean that advertisers will continue to profit from television advertising. It would only increase the cost of advertising. No info can be gathered on profits realised by as companies.

Hence "e". Since if more people are watching there are chances that you will increase revenue by TV ads.

Other options

A - Again rejected for same reason as C
B and D - Out of scope.

Anyway, OA and OE?
SVP
Joined: 28 May 2005
Posts: 1723
Location: Dhaka
Followers: 7

Kudos [?]: 339 [0], given: 0

### Show Tags

06 Dec 2005, 13:12
I got E.
_________________

hey ya......

Director
Joined: 17 Oct 2005
Posts: 932
Followers: 1

Kudos [?]: 205 [0], given: 0

### Show Tags

06 Dec 2005, 16:24
The OA is E
Senior Manager
Joined: 11 May 2004
Posts: 458
Location: New York
Followers: 1

Kudos [?]: 47 [0], given: 0

### Show Tags

07 Dec 2005, 05:48
Late, but agree with E.

How do you justify increasing the rate?
If viewership is increasing, then more ppl are watching advertisments, so you have the opportunity to sell more.
07 Dec 2005, 05:48
Similar topics Replies Last post
Similar
Topics:
Companies that advertise on television complain that digital televisio 1 27 Jan 2017, 03:02
9 The television network's advertisement for its new medical 6 08 Nov 2013, 04:50
7 Fact 1: Television advertising is becoming less effective: 9 07 Jan 2010, 13:30
A recent study reveals that television advertising does not 1 30 Jun 2009, 22:46
Fact 1: Television advertising is becoming less effective: 8 05 May 2008, 17:13
Display posts from previous: Sort by

# Television executives recently annonced that advertising

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.