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The recent upheaval in the office-equipment retail business,

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The recent upheaval in the office-equipment retail business,  [#permalink]

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New post 25 Jun 2018, 22:02
GMATNinja, GMATninja2, Does not option A break the assumption of the author i.e. with small retail market share a company cannot cause upheaval in the office-equipment retail business.

For option B my thought is- Despite prices down throughout the retail market for office supplies can small firms not survive in the market? yes they can

I would appreciate your assistance to clear my doubt how option B is a better choice.
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Re: The recent upheaval in the office-equipment retail business,  [#permalink]

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New post 07 Jul 2018, 11:21
gsingh0711 wrote:
GMATNinja, GMATninja2, Does not option A break the assumption of the author i.e. with small retail market share a company cannot cause upheaval in the office-equipment retail business.

For option B my thought is- Despite prices down throughout the retail market for office supplies can small firms not survive in the market? yes they can

I would appreciate your assistance to clear my doubt how option B is a better choice.

Choice (A) is not talking about the retail market at all. Instead, it talks about non-retail sales to manufacturers. Thus, (A) is not relevant to this argument.

Yes, (B) does not PROVE that the author's argument is wrong. It is certainly possible that small retail firms could survive despite lower prices. But we are simply looking for the answer that, if true, would most weaken the argument.

If (B) is true, then the small firms MUST have lowered their prices. Unless they can suddenly cut costs, this means that their revenues and profits have decreased. This could certainly explain why many small firms have gone out of business.

Again, we don't need to prove that the lowered prices caused many small firms to go out of business. But (B) definitely weakens the author's argument by providing evidence supporting that possibility.

I hope that helps!
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Re: The recent upheaval in the office-equipment retail business,  [#permalink]

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New post 07 Jul 2018, 11:22
gsingh0711 wrote:
GMATNinja, GMATninja2, Does not option A break the assumption of the author i.e. with small retail market share a company cannot cause upheaval in the office-equipment retail business.

For option B my thought is- Despite prices down throughout the retail market for office supplies can small firms not survive in the market? yes they can

I would appreciate your assistance to clear my doubt how option B is a better choice.

Choice (A) is not talking about the retail market at all. Instead, it talks about non-retail sales to manufacturers. Thus, (A) is not relevant to this argument.

Yes, (B) does not PROVE that the author's argument is wrong. It is certainly possible that small retail firms could survive despite lower prices. But we are simply looking for the answer that, if true, would most weaken the argument.

If (B) is true, then the small firms MUST have lowered their prices. Unless they can suddenly cut costs, this means that their revenues and profits have decreased. This could certainly explain why many small firms have gone out of business.

Again, we don't need to prove that the lowered prices caused many small firms to go out of business. But (B) definitely weakens the author's argument by providing evidence supporting that possibility.

I hope that helps!
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Re: The recent upheaval in the office-equipment retail business,  [#permalink]

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New post 05 Aug 2019, 18:20
The actual stem could be better written to avoid confusion. Or maybe I'm just easily confused.

The recent upheaval in the office-equipment retail business, in which many small firms have gone out of business, has been attributed to the advent of office equipment superstores whose high sales volume keeps their prices low. This analysis is flawed, however, since even today the superstores control a very small share of the retail market.

I constantly thought the argument said "volumes keep" super stores prices low - so it made no sense to me what was going on until I realised I mixed this up.
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Re: The recent upheaval in the office-equipment retail business,   [#permalink] 05 Aug 2019, 18:20

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