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The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli

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The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 26 Jul 2018, 16:41
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A
B
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E

Difficulty:

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Question Stats:

55% (01:44) correct 45% (01:32) wrong based on 334 sessions

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The Kapoor Meatworks has a virtual monopoly on expensive, gourmet delicacies. In order to expand their market, they intend to offer a budget line of less costly delicacies. Such a product is virtually unknown, and they realize that its success depends upon a heavy advertising campaign. They have decided to finance the advertising with the profits from their gourmet line.

Which of the following, assuming that each is a realistic possibility, would constitute the most serious obstacle to the Kapoor Meatworks' project?


A) The introduction of a budget line of delicacies completely undercuts the sales of the gourmet line.
B) At the start, the company spends more on advertising than it makes from sales of the budget line delicacies.
C) When the budget line delicacies grow in popularity, competitors enter the budget delicacies market and Kapoor does not have a monopoly in that market.
D) Many of the consumers who purchase the budget line are tempted to try the delicacies offered in the gourmet line.
E) Many of the stores that now carry Kapoor's gourmet line of delicacies are exclusive, and refuse to carry their budget line.

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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 26 Jul 2018, 17:24
Carlgrc wrote:
The Kapoor Meatworks has a virtual monopoly on expensive, gourmet delicacies. In order to expand their market, they intend to offer a budget line of less costly delicacies. Such a product is virtually unknown, and they realize that its success depends upon a heavy advertising campaign. They have decided to finance the advertising with the profits from their gourmet line.

Which of the following, assuming that each is a realistic possibility, would constitute the most serious obstacle to the Kapoor Meatworks' project?


A) The introduction of a budget line of delicacies completely undercuts the sales of the gourmet line.
B) At the start, the company spends more on advertising than it makes from sales of the budget line delicacies.
C) When the budget line delicacies grow in popularity, competitors enter the budget delicacies market and Kapoor does not have a monopoly in that market.
D) Many of the consumers who purchase the budget line are tempted to try the delicacies offered in the gourmet line.
E) Many of the stores that now carry Kapoor's gourmet line of delicacies are exclusive, and refuse to carry their budget line.


Profit from gourmet line for advertising for budget line ...
All choices may be tempting but look for most serious obstacle for above

Choice A gives us a reason that the money may not be available for advertising, thereby effecting the project.
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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 27 Jul 2018, 21:04
chetan2u wrote:
Carlgrc wrote:
The Kapoor Meatworks has a virtual monopoly on expensive, gourmet delicacies. In order to expand their market, they intend to offer a budget line of less costly delicacies. Such a product is virtually unknown, and they realize that its success depends upon a heavy advertising campaign. They have decided to finance the advertising with the profits from their gourmet line.

Which of the following, assuming that each is a realistic possibility, would constitute the most serious obstacle to the Kapoor Meatworks' project?


A) The introduction of a budget line of delicacies completely undercuts the sales of the gourmet line.
B) At the start, the company spends more on advertising than it makes from sales of the budget line delicacies.
C) When the budget line delicacies grow in popularity, competitors enter the budget delicacies market and Kapoor does not have a monopoly in that market.
D) Many of the consumers who purchase the budget line are tempted to try the delicacies offered in the gourmet line.
E) Many of the stores that now carry Kapoor's gourmet line of delicacies are exclusive, and refuse to carry their budget line.


Profit from gourmet line for advertising for budget line ...
All choices may be tempting but look for most serious obstacle for above

Choice A gives us a reason that the money may not be available for advertising, thereby effecting the project.


Hi chetan2u

Can you please point whats wrong with choice E.
I felt that it seriously weakens the Argument as Kapoor's are ready for heavy advertising but there's no point in spending that much money as many stores refuse to carry the new budget line of less costly delicacies.

Is it because of the keyword Many.Meaning few stores may carry the new budget line.
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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 27 Jul 2018, 21:48
1
gmat1393 wrote:
chetan2u wrote:
Carlgrc wrote:
The Kapoor Meatworks has a virtual monopoly on expensive, gourmet delicacies. In order to expand their market, they intend to offer a budget line of less costly delicacies. Such a product is virtually unknown, and they realize that its success depends upon a heavy advertising campaign. They have decided to finance the advertising with the profits from their gourmet line.

Which of the following, assuming that each is a realistic possibility, would constitute the most serious obstacle to the Kapoor Meatworks' project?


A) The introduction of a budget line of delicacies completely undercuts the sales of the gourmet line.
B) At the start, the company spends more on advertising than it makes from sales of the budget line delicacies.
C) When the budget line delicacies grow in popularity, competitors enter the budget delicacies market and Kapoor does not have a monopoly in that market.
D) Many of the consumers who purchase the budget line are tempted to try the delicacies offered in the gourmet line.
E) Many of the stores that now carry Kapoor's gourmet line of delicacies are exclusive, and refuse to carry their budget line.


Profit from gourmet line for advertising for budget line ...
All choices may be tempting but look for most serious obstacle for above

Choice A gives us a reason that the money may not be available for advertising, thereby effecting the project.


Hi chetan2u

Can you please point whats wrong with choice E.
I felt that it seriously weakens the Argument as Kapoor's are ready for heavy advertising but there's no point in spending that much money as many stores refuse to carry the new budget line of less costly delicacies.

Is it because of the keyword Many.Meaning few stores may carry the new budget line.


Hi..

the main point of project is that the financing advertisement will be from profit of gourmet lines

the stores are not being questioned. if these stores refuse, other stores on rent/new may be picked up.

but point A puts a question mark on the profit itself, so a better choice
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3) effects of arithmetic operations : https://gmatclub.com/forum/effects-of-arithmetic-operations-on-fractions-269413.html


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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 27 Jul 2018, 22:08
Quote:
Can you please point whats wrong with choice E.
I felt that it seriously weakens the Argument as Kapoor's are ready for heavy advertising but there's no point in spending that much money as many stores refuse to carry the new budget line of less costly delicacies.

Is it because of the keyword Many.Meaning few stores may carry the new budget line.

Hi..

the main point of project is that the financing advertisement will be from profit of gourmet lines

the stores are not being questioned. if these stores refuse, other stores on rent/new may be picked up.

but point A puts a question mark on the profit itself, so a better choice


Thank you @chetan2u.This makes sense.
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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 09 Aug 2018, 17:43
Hello chetan2u,

I went for C and my thought process was that when it loses the market for new budget line, there will be huge loss. There is no point in investing on advertising.

Where I went wrong?
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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 08 Nov 2018, 10:33
dimmak wrote:
The Kapoor Meatworks has a virtual monopoly on expensive, gourmet delicacies. In order to expand their market, they intend to offer a budget line of less costly delicacies. Such a product is virtually unknown, and they realize that its success depends upon a heavy advertising campaign. They have decided to finance the advertising with the profits from their gourmet line.

Which of the following, assuming that each is a realistic possibility, would constitute the most serious obstacle to the Kapoor Meatworks' project?


A) The introduction of a budget line of delicacies completely undercuts the sales of the gourmet line.
B) At the start, the company spends more on advertising than it makes from sales of the budget line delicacies.
C) When the budget line delicacies grow in popularity, competitors enter the budget delicacies market and Kapoor does not have a monopoly in that market.
D) Many of the consumers who purchase the budget line are tempted to try the delicacies offered in the gourmet line.
E) Many of the stores that now carry Kapoor's gourmet line of delicacies are exclusive, and refuse to carry their budget line.


chetan2u , nightblade354 , broall ,GMATNinjaTwo , aragonn

Reason why I selected B: If influx of money via sales of gourmet delicacy is less than that spent on advertising, then the entire plan to finance the project can go haywire.

Reason why I rejected A: Ok, agreed, the introduction of a budget line of delicacies completely undercuts the sales of the gourmet line but we don't know whether the it undercuts sales to the point that financing the budget line becomes impossible.

I am still confused why the answer is A. Please help
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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 08 Nov 2018, 13:23
Could someone help me to eliminate answer choice “c” ??

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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 08 Nov 2018, 14:15
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aditliverpoolfc wrote:
Could someone help me to eliminate answer choice “c” ??

Posted from my mobile device


would constitute the most serious obstacle to the Kapoor Meatworks' project

What is the project?

expand their market by advertising with the profits from their gourmet line.

Now C says competitors will enter the market so no more monopoly for Kapoor's But Kapoors do have expensive, gourmet delicacies that makes them remain in status quo . It has no effect on the project.

But A says budget line of delicacies completely undercuts the sales of the gourmet line. It means no heavy advertising campaign. As the wont have the money to do so-- So, the project fails.
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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 08 Nov 2018, 19:00
SOmebody could tell me whta is wrong with letter D?
Thank you.
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The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 09 Nov 2018, 05:55
I have not read the question, so I cannot issue a statement directly about it. That said, it is a Kaplan question, and Kaplan question can be wildly unrealistic and unrepresentative of an actual GMAT question. There can sometimes be multiple answers and there can sometimes be no answers.

Edit: I read it and it seems like a fine question.

jorgetomas9, (D) is wrong because it says "many". Many is the same as some, and some can mean any amount between 1 and the full amount. Therefore, this cannot be our answer

aditliverpoolfc, (C) is wrong because it is out of scope. Who cares if they do not have a monopoly? If they are profitable and have 50 competitors, who cares?
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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli  [#permalink]

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New post 09 Nov 2018, 07:46
nightblade354 wrote:
I have not read the question, so I cannot issue a statement directly about it. That said, it is a Kaplan question, and Kaplan question can be wildly unrealistic and unrepresentative of an actual GMAT question. There can sometimes be multiple answers and there can sometimes be no answers.

Edit: I read it and it seems like a fine question.

jorgetomas9, (D) is wrong because it says "many". Many is the same as some, and some can mean any amount between 1 and the full amount. Therefore, this cannot be our answer

aditliverpoolfc, (C) is wrong because it is out of scope. Who cares if they do not have a monopoly? If they are profitable and have 50 competitors, who cares?

I understand now that Many could mean some that can be mean as one or teo. thank you.
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Re: The Kapoor Meatworks has a virtual monopoly on expensive, gourmet deli &nbs [#permalink] 09 Nov 2018, 07:46
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