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Traditionally, the most highly sought cars have been the "sports cars"

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Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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Traditionally, the most highly sought cars have been the "sports cars" and similar two-door models. Nevertheless, Zincstone Motors has chosen to eliminate the last two-door models and produce only four-door models.

Which of the following would, if true, most help to explain Zincstone Motors' strategy?

A) Some of the most financially successful households are the two-income houses, a high percentage of which have kids.
B) As American consumers lose access to car manufacturers who produce two-door cars, and as two-door cars occupy smaller and smaller shares of the United States car market, American consumers will be more likely to buy four-door cars.
C) Many of Zincstone Motors models are exported and sold overseas, including in some countries like Japan, which import a significant number of cars into the United States.
D) After a spate of recent additional safety requirements, the cost of frame and doors of Zincstone Motors' standard two-door models are now three times as expensive as standard four-door frame and doors.
E) In almost every instance, Zincstone Motors models lead all comparable models of competitors in fuel efficiency and have lower average maintenance costs as well.

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Last edited by mikemcgarry on 26 Sep 2017, 15:24, edited 1 time in total.
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Re: Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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Traditionally, the most highly sought cars have been the "sports cars" and similar two-door models. Nevertheless, Zincstone Motors has chosen to eliminate the last two-door models and produce only four-door models.

Which of the following would, if true, most help to explain Zincstone Motors' strategy?

A) Some of the most financially successful households are the two-income houses, a high percentage of which have kids.Key word here is "some". Now Z Motors would obviously not change its product line to cater to a small market.
B) As American consumers lose access to car manufacturers who produce two-door cars, and as two-door cars occupy smaller and smaller shares of the United States car market, American consumers will be more likely to buy four-door cars.This is pure wishful thinking. This basically say that other car companies will follow Z motor's suit and change their product line. But why would they do that especially since it is known that sports cars and 2 door models work.
C) Many of Zincstone Motors models are exported and sold overseas, including in some countries like Japan, which import a significant number of cars into the United states. We do not know whether Japan will buy 4 door cars. Maybe they too like 2 door cars.
D) Because of additional safety requirements, the frame and doors of Zincstone Motors' standard two-door models were three times as expensive as standard four-door frame and doors.Correct. This tells us that the cost of producing a sports car or 2 door car has increased prohibitively and hence, we conclude, it would be difficult for Z motors to make profits.
E) In almost every instance, Zincstone Motors models lead all comparable models of competitors in fuel efficiency and have lower average maintenance costs as well.Yes. But why would they change their product mix in a way that will go against the market norm?

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Re: Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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New post 04 Jan 2016, 10:17
AmoyV wrote:
Traditionally, the most highly sought cars have been the "sports cars" and similar two-door models. Nevertheless, Zincstone Motors has chosen to eliminate the last two-door models and produce only four-door models.

Which of the following would, if true, most help to explain Zincstone Motors' strategy?

A) Some of the most financially successful households are the two-income houses, a high percentage of which have kids.Key word here is "some". Now Z Motors would obviously not change its product line to cater to a small market.
B) As American consumers lose access to car manufacturers who produce two-door cars, and as two-door cars occupy smaller and smaller shares of the United States car market, American consumers will be more likely to buy four-door cars.This is pure wishful thinking. This basically say that other car companies will follow Z motor's suit and change their product line. But why would they do that especially since it is known that sports cars and 2 door models work.
C) Many of Zincstone Motors models are exported and sold overseas, including in some countries like Japan, which import a significant number of cars into the United states. We do not know whether Japan will buy 4 door cars. Maybe they too like 2 door cars.
D) Because of additional safety requirements, the frame and doors of Zincstone Motors' standard two-door models were three times as expensive as standard four-door frame and doors.Correct. This tells us that the cost of producing a sports car or 2 door car has increased prohibitively and hence, we conclude, it would be difficult for Z motors to make profits.
E) In almost every instance, Zincstone Motors models lead all comparable models of competitors in fuel efficiency and have lower average maintenance costs as well.Yes. But why would they change their product mix in a way that will go against the market norm?


I was confused between C and D. By the way what does C mean? "Import into the United States"? Does this mean that Japan sells cars back into USA or does it mean that Japan buys cars in USA? If the former then C could be correct. In order to eliminate competiton with its own product Zincstone Motors decided to sell cars that are not most-sought after. Confusing.
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Re: Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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New post 04 Jan 2016, 12:26
Harley1980 wrote:
Traditionally, the most highly sought cars have been the "sports cars" and similar two-door models. Nevertheless, Zincstone Motors has chosen to eliminate the last two-door models and produce only four-door models.

Which of the following would, if true, most help to explain Zincstone Motors' strategy?

A) Some of the most financially successful households are the two-income houses, a high percentage of which have kids.
B) As American consumers lose access to car manufacturers who produce two-door cars, and as two-door cars occupy smaller and smaller shares of the United States car market, American consumers will be more likely to buy four-door cars.
C) Many of Zincstone Motors models are exported and sold overseas, including in some countries like Japan, which import a significant number of cars into the United states.
D) Because of additional safety requirements, the frame and doors of Zincstone Motors' standard two-door models were three times as expensive as standard four-door frame and doors.
E) In almost every instance, Zincstone Motors models lead all comparable models of competitors in fuel efficiency and have lower average maintenance costs as well.


Hi Harley1980

Would you please provide the OE. I have doubts about choice C and D. As Konstantin also mentioned, C has some ambiguity, and I am still not clear why D is better than B. D talks only tech issues and don't care about market demand at all.

Thanks

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Re: Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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New post 04 Jan 2016, 19:16
in solve the paradox type of questions, we can use this magical formula:
because - correct answer choice - , A is true, while B stands.
A - manufacturing 4-doors cars
B - sports cars and 2-doors cars are very popular.

usually, solve paradox questions fall into one of the categories:
1. ineffective implementation of the plan;
2. alternative explanation;
3. improper comparison.

we clearly see that here we need an alternative explanation.
only answer choice D perfectly fits in here.

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Re: Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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New post 13 Sep 2017, 10:23
Why is B incorrect?

In my view, "the most highly sought cars have been the "sports cars" and similar two-door models" does not necessarily mean "most American consumers still have access to car manufacturers who produce two-door cars".

Choice B provides the new information that two-door cars occupy **smaller and smaller shares** of the United States car market, American consumers will be more likely to buy four-door cars.

And thus, Zincstone Motors has caught the insight and chosen to eliminate the last two-door models and produce only four-door models. However, B is not the correct choice although it seems reasonable to me :roll:


Can someone please shed more light on choice B?
Thanks..thanks...thanks......

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Re: Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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New post 16 Sep 2017, 23:24
Hi experts ,

I have a doubt regarding this question
Option B presents a reason for the Zincstone Motors to produce only 4 door cars.
Option D is also gives us reason why Zincstone Motors chose to produce only 4 door cars

Option B takes into account market forces whereas option D takes into account internal company dynamics .

Then Why option D is superior to option B
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Re: Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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New post 20 Sep 2017, 10:10
why option B is incorrect.

experts pls. help

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Re: Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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Traditionally, the most highly sought cars have been the "sports cars" and similar two-door models. Nevertheless, Zincstone Motors has chosen to eliminate the last two-door models and produce only four-door models.

We need to find why Zincstone decided to stop making two-door models and produce only four-door models.


Which of the following would, if true, most help to explain Zincstone Motors' strategy?

A) Some of the most financially successful households are the two-income houses, a high percentage of which have kids.
[Even if these people have kids that does not mean they will necessarily buy a car and that also a four-door one! ]

B) As American consumers lose access to car manufacturers who produce two-door cars, and as two-door cars occupy smaller and smaller shares of the United States car market, American consumers will be more likely to buy four-door cars.
[Another very tempting option but it is kind of out of scope. Do we know Zinctone manufactures only in US. It could be possible that it is an India manufacturers, where the demand for two-door models is still a lot! - Thus this is an out of scope option.]

C) Many of Zincstone Motors models are exported and sold overseas, including in some countries like Japan, which import a significant number of cars into the United states.
[Out of Scope - We are not interested in knowing where does it export or import. We need to know the reason of stopping the two-door model.]

D) Because of additional safety requirements, the frame and doors of Zincstone Motors' standard two-door models were three times as expensive as standard four-door frame and doors.
[This gives us a reason! We can infer that because of high-cost issues, Zincstone decided to stop making two-door models.]

E) In almost every instance, Zincstone Motors models lead all comparable models of competitors in fuel efficiency and have lower average maintenance costs as well.
[Out of scope]
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Re: Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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Hi mikemcgarry
Could you please clear my doubt.

option D, the OA says that: Because of additional safety requirements, the frame and doors of Zincstone Motors' standard two-door models were three times as expensive as standard four-door frame and doors.

My doubt is that we are assuming that both 2 door and 4 door models sell for the same price, the manufacturers could price the 2 door models considerably higher than the 4 door models to offset this extra cost.
The question stem also mentions that two-door models are highly sought after, so there is no reason to believe that the 2 door model cars will not sell.

I feel that options A and B are better than D, though I am aware that these options have their limitations.

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Re: Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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New post 26 Sep 2017, 15:44
darn wrote:
Hi mikemcgarry
Could you please clear my doubt.

option D, the OA says that: Because of additional safety requirements, the frame and doors of Zincstone Motors' standard two-door models were three times as expensive as standard four-door frame and doors.

My doubt is that we are assuming that both 2 door and 4 door models sell for the same price, the manufacturers could price the 2 door models considerably higher than the 4 door models to offset this extra cost.
The question stem also mentions that two-door models are highly sought after, so there is no reason to believe that the 2 door model cars will not sell.

I feel that options A and B are better than D, though I am aware that these options have their limitations.

Dear darn,

I'm happy to respond. :-) I wrote this question, and then my friend Chris Lele edited it, so I put the updated version above--just choice (D) was modified slightly.

There are a few problems in your reasoning. The prompt begins
"Traditionally, the most highly sought cars have been the "sports cars" and similar two-door models. . . ."
That first word is an important context word that you need to understand. When something is said to be true "traditionally," that's often code for "it's not true any more!" If something has been true and continues to be true, there would be no reason to use that word. Thus, we cannot naively assume that two-door cars automatically will sell.

Second, (D) says "the cost of frame and doors" tripled. Do you understand what the "frame" of a car is? These and the doors are major components of a car, so if these costs triples, the cost of the car might nearly triple. I don't know how well you understand the Law of Supply and Demand, but there are very very few large items that would still sell if their price tripled.

There are a number of problems with your arguments against (D).

Both (A) & (B) are well designed traps. Both are legitimate reasons why "Zincstone Motors" might reduce the number of two-door cars its produces, but neither would explain why this production would be absolutely halted.

Does all this make sense?
Mike :-)
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Traditionally, the most highly sought cars have been the "sports cars" [#permalink]

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mikemcgarry wrote:
darn wrote:
Hi mikemcgarry
Could you please clear my doubt.

option D, the OA says that: Because of additional safety requirements, the frame and doors of Zincstone Motors' standard two-door models were three times as expensive as standard four-door frame and doors.

My doubt is that we are assuming that both 2 door and 4 door models sell for the same price, the manufacturers could price the 2 door models considerably higher than the 4 door models to offset this extra cost.
The question stem also mentions that two-door models are highly sought after, so there is no reason to believe that the 2 door model cars will not sell.

I feel that options A and B are better than D, though I am aware that these options have their limitations.

Dear darn,

I'm happy to respond. :-) I wrote this question, and then my friend Chris Lele edited it, so I put the updated version above--just choice (D) was modified slightly.

There are a few problems in your reasoning. The prompt begins
"Traditionally, the most highly sought cars have been the "sports cars" and similar two-door models. . . ."
That first word is an important context word that you need to understand. When something is said to be true "traditionally," that's often code for "it's not true any more!" If something has been true and continues to be true, there would be no reason to use that word. Thus, we cannot naively assume that two-door cars automatically will sell.

Second, (D) says "the cost of frame and doors" tripled. Do you understand what the "frame" of a car is? These and the doors are major components of a car, so if these costs triples, the cost of the car might nearly triple. I don't know how well you understand the Law of Supply and Demand, but there are very very few large items that would still sell if their price tripled.

There are a number of problems with your arguments against (D).

Both (A) & (B) are well designed traps. Both are legitimate reasons why "Zincstone Motors" might reduce the number of two-door cars its produces, but neither would explain why this production would be absolutely halted.

Does all this make sense?
Mike :-)


Hi mikemcgarry

Thank you for your response :)

I totally neglected the word 'traditionally'. Thanks for helping me understand the relevance of that word.

I went through the updated version of option D and I feel that now its much more obvious that D is the right answer.

I do understand how supply and demand works but I am also aware that 2 door cars generally do sell for 3 times the cost of most 4 door cars. It is possible that one of the reasons for the difference in price is because, for safety purposes, the frame of the 2 door car is considerably more expensive to produce than that of 2 door cars.

The cost has tripled 'now' compared to that of 4 door cars because of additional safety requirements makes much more sense in the current version of option D as compared to the previous version which could be interpreted as - the cost of production of 2 door cars has always been three times more expensive than that of 4 door cars because of the additional safety requirements of the frame.

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Traditionally, the most highly sought cars have been the "sports cars"   [#permalink] 26 Sep 2017, 22:29
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