It is currently 22 Feb 2018, 14:58

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

V02-23

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

Hide Tags

Expert Post
1 KUDOS received
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 43867
V02-23 [#permalink]

Show Tags

New post 16 Sep 2014, 00:57
1
This post received
KUDOS
Expert's post
3
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

62% (01:12) correct 38% (01:18) wrong based on 77 sessions

HideShow timer Statistics

A small orchard specializing in citrus fruits has been receiving fewer orders for oranges in the off season. Orchard owners expect demand to pick up in the coming weeks as harvest begins, but they are concerned about a neighboring orchard whose stock is nearly three times their own stock. The neighboring orchard has announced plans to sell cases of oranges for 20% less than regular price in order to jump-start the season by attracting new business. The small orchard plans to compete with the bigger orchard by reducing the rates by 20%.

Which of the following, if true, points to the most serious flaw of the small orchard's plan to compete with the large orchard by matching the prices of the competing orchard?


A. The small orchard has a dozen customers under contract to purchase the first oranges of the season and may anger them by not extending the discount to them.
B. The small orchard has enough time to advertise its oranges at lower prices.
C. The small orchard will reduce the number of oranges in each case to minimize losses incurred by matching prices.
D. The large orchard has a larger inventory and is more able to take losses on initially discounted oranges.
E. The large orchard will target a bigger market than the small orchard.
[Reveal] Spoiler: OA

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Expert Post
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 43867
Re V02-23 [#permalink]

Show Tags

New post 16 Sep 2014, 00:57
Official Solution:


A small orchard specializing in citrus fruits has been receiving fewer orders for oranges in the off season. Orchard owners expect demand to pick up in the coming weeks as harvest begins, but they are concerned about a neighboring orchard whose stock is nearly three times their own stock. The neighboring orchard has announced plans to sell cases of oranges for 20% less than regular price in order to jump-start the season by attracting new business. The small orchard plans to compete with the bigger orchard by reducing the rates by 20%.

Which of the following, if true, points to the most serious flaw of the small orchard's plan to compete with the large orchard by matching the prices of the competing orchard?


A. The small orchard has a dozen customers under contract to purchase the first oranges of the season and may anger them by not extending the discount to them.
B. The small orchard has enough time to advertise its oranges at lower prices.
C. The small orchard will reduce the number of oranges in each case to minimize losses incurred by matching prices.
D. The large orchard has a larger inventory and is more able to take losses on initially discounted oranges.
E. The large orchard will target a bigger market than the small orchard.


Situation: A small orchard desires to compete with a larger neighboring orchard.

Reasoning: Which point reveals the most serious flaw in the small orchard's plan? It can be determined from the passage that the large orchard has three times the stock of the small orchard, and that they are looking to attract new business. It can also be inferred from the passage that the owners of the large orchard are confident that they are able to sell oranges at a discount and still remain solvent.
  1. The concern of the orchards is in attracting new business, not satisfying existing customers. Additionally, customers under contract have likely already agreed to a non-discount price.
  2. This item strengthens the small orchard's plan.
  3. This approach is not a flaw in the plan, but a possible, potentially unethical, solution.
  4. The large orchard's greater inventory will give them a flexibility that will outlast the small orchard. The small orchard could run out of stock before the large orchard has sold even a third of its oranges.
  5. Since the large orchard has bigger stock, it will venture into bigger market. This is an inference from the passage and does not indicate any flaw in the small orchard's plan.

Answer: D
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Intern
Intern
User avatar
Joined: 06 Nov 2014
Posts: 14
Re: V02-23 [#permalink]

Show Tags

New post 18 Mar 2015, 20:36
Hi,

Why E is incorrect? If large farm and small firm are not in competition, then the entire plan is of no use.
Also Let say the large farm has huge stock to unload in market; but still it would affect the market of the small firm.
Intern
Intern
avatar
Joined: 12 Dec 2014
Posts: 2
Re: V02-23 [#permalink]

Show Tags

New post 20 Mar 2015, 04:03
Richa07 wrote:
Hi,

Why E is incorrect? If large farm and small firm are not in competition, then the entire plan is of no use.
Also Let say the large farm has huge stock to unload in market; but still it would affect the market of the small firm.



I second this ..
1 KUDOS received
Manager
Manager
avatar
B
Joined: 02 Sep 2014
Posts: 89
Location: United States
Schools: Haas EWMBA '20
GMAT 1: 770 Q50 V44
GPA: 3.97
GMAT ToolKit User Reviews Badge
Re: V02-23 [#permalink]

Show Tags

New post 21 Jun 2015, 22:25
1
This post received
KUDOS
Bunuel wrote:
Official Solution:


A small orchard specializing in citrus fruits has been receiving fewer orders for oranges in the off season. Orchard owners expect demand to pick up in the coming weeks as harvest begins, but they are concerned about a neighboring orchard nearly three times their size. The neighboring orchard has announced plans to sell cases of oranges for 20% less than regular price in order to jump-start the season by attracting new business.

Which of the following, if true, points to the most serious flaw of the small orchard's plan to attract business by matching the prices of the competing orchard?


A. The small orchard has a dozen customers under contract to purchase the first oranges of the season and may anger them by not extending the discount to them.
B. The small orchard does not have time to advertise its oranges at lower prices.
C. The small orchard will reduce the number of oranges in each case to minimize losses incurred by matching prices.
D. The large orchard has a larger inventory and is more able to take losses on initially discounted oranges.
E. The large orchard will target a different market than the small orchard.


Situation: A small orchard desires to compete with a larger neighboring orchard.

Reasoning: Which point reveals the most serious flaw in the small orchard's plan? It can be determined from the passage that the large orchard has three times the inventory of the small orchard, and that they are looking to attract new business. It can also be inferred from the passage that the owners of the large orchard are confident that they are able to sell oranges at a discount and still remain solvent.
  1. The concern of the orchards is in attracting new business, not satisfying existing customers. Additionally, customers under contract have likely already agreed to a non-discount price.
  2. This item may be problematic, but does not address the concerns of the passage as a whole.
  3. This approach is not a flaw in the plan, but a possible, potentially unethical, solution.
  4. The large orchard's greater inventory will give them a flexibility that will outlast the small orchard. The small orchard could run out of stock before the large orchard has sold even a third of its oranges.
  5. This item makes it sound as if the two orchards will not actually be in competition, but does not address the soundness of the small orchard's plan.

Answer: D


I don't understand this explanation for why D is correct.
If the small orchard has run out of stock (meaning they sell everything), why is that a problem? The goal is to attract customers. But if they are sold out completely, that means that goal is achieved.

Only option B prevents them from achiving this goal of getting more customers. If they dont advertise the lower price (which neighbouring orchard has announced), then they wont achieve the goal.
Any thoughts?
Manager
Manager
avatar
B
Joined: 02 Sep 2014
Posts: 89
Location: United States
Schools: Haas EWMBA '20
GMAT 1: 770 Q50 V44
GPA: 3.97
GMAT ToolKit User Reviews Badge
Re: V02-23 [#permalink]

Show Tags

New post 21 Jun 2015, 22:27
Richa07 wrote:
Hi,

Why E is incorrect? If large farm and small firm are not in competition, then the entire plan is of no use.
Also Let say the large farm has huge stock to unload in market; but still it would affect the market of the small firm.



IMO, the goal is to attract more customers.
This option at best does not affect achieving this goal but is not really a flaw in the plan. If they have different markets, at best it doesnt matter. But it wont cause problems in achieving the goal.
1 KUDOS received
Manager
Manager
avatar
B
Joined: 11 Mar 2015
Posts: 50
GMAT 1: 730 Q50 V38
GPA: 4
GMAT ToolKit User
Re: V02-23 [#permalink]

Show Tags

New post 19 Jul 2015, 02:36
1
This post received
KUDOS
82vkgmat wrote:
Bunuel wrote:
Official Solution:


A small orchard specializing in citrus fruits has been receiving fewer orders for oranges in the off season. Orchard owners expect demand to pick up in the coming weeks as harvest begins, but they are concerned about a neighboring orchard nearly three times their size. The neighboring orchard has announced plans to sell cases of oranges for 20% less than regular price in order to jump-start the season by attracting new business.

Which of the following, if true, points to the most serious flaw of the small orchard's plan to attract business by matching the prices of the competing orchard?


A. The small orchard has a dozen customers under contract to purchase the first oranges of the season and may anger them by not extending the discount to them.
B. The small orchard does not have time to advertise its oranges at lower prices.
C. The small orchard will reduce the number of oranges in each case to minimize losses incurred by matching prices.
D. The large orchard has a larger inventory and is more able to take losses on initially discounted oranges.
E. The large orchard will target a different market than the small orchard.


Situation: A small orchard desires to compete with a larger neighboring orchard.

Reasoning: Which point reveals the most serious flaw in the small orchard's plan? It can be determined from the passage that the large orchard has three times the inventory of the small orchard, and that they are looking to attract new business. It can also be inferred from the passage that the owners of the large orchard are confident that they are able to sell oranges at a discount and still remain solvent.
  1. The concern of the orchards is in attracting new business, not satisfying existing customers. Additionally, customers under contract have likely already agreed to a non-discount price.
  2. This item may be problematic, but does not address the concerns of the passage as a whole.
  3. This approach is not a flaw in the plan, but a possible, potentially unethical, solution.
  4. The large orchard's greater inventory will give them a flexibility that will outlast the small orchard. The small orchard could run out of stock before the large orchard has sold even a third of its oranges.
  5. This item makes it sound as if the two orchards will not actually be in competition, but does not address the soundness of the small orchard's plan.

Answer: D


I don't understand this explanation for why D is correct.
If the small orchard has run out of stock (meaning they sell everything), why is that a problem? The goal is to attract customers. But if they are sold out completely, that means that goal is achieved.

Only option B prevents them from achiving this goal of getting more customers. If they dont advertise the lower price (which neighbouring orchard has announced), then they wont achieve the goal.
Any thoughts?


Fully agree with this post! Matched my thinking 100%) Any chance to get the feedback from creators of this Q? Bunuel

Thanks!
Intern
Intern
avatar
Joined: 06 Aug 2015
Posts: 4
Re: V02-23 [#permalink]

Show Tags

New post 26 Oct 2015, 08:15
I think this is a poor-quality question and I agree with explanation. The argument NEVER states that the business is matching the prices of the competing orchard.
1 KUDOS received
Intern
Intern
avatar
Joined: 29 Oct 2014
Posts: 25
Schools: Molson '19
GMAT Date: 12-06-2014
GMAT ToolKit User
Re: V02-23 [#permalink]

Show Tags

New post 04 Mar 2016, 07:59
1
This post received
KUDOS
1
This post was
BOOKMARKED
CorporateFinancier wrote:
82vkgmat wrote:
Bunuel wrote:
Official Solution:


A small orchard specializing in citrus fruits has been receiving fewer orders for oranges in the off season. Orchard owners expect demand to pick up in the coming weeks as harvest begins, but they are concerned about a neighboring orchard nearly three times their size. The neighboring orchard has announced plans to sell cases of oranges for 20% less than regular price in order to jump-start the season by attracting new business.

Which of the following, if true, points to the most serious flaw of the small orchard's plan to attract business by matching the prices of the competing orchard?


A. The small orchard has a dozen customers under contract to purchase the first oranges of the season and may anger them by not extending the discount to them.
B. The small orchard does not have time to advertise its oranges at lower prices.
C. The small orchard will reduce the number of oranges in each case to minimize losses incurred by matching prices.
D. The large orchard has a larger inventory and is more able to take losses on initially discounted oranges.
E. The large orchard will target a different market than the small orchard.


Situation: A small orchard desires to compete with a larger neighboring orchard.

Reasoning: Which point reveals the most serious flaw in the small orchard's plan? It can be determined from the passage that the large orchard has three times the inventory of the small orchard, and that they are looking to attract new business. It can also be inferred from the passage that the owners of the large orchard are confident that they are able to sell oranges at a discount and still remain solvent.
  1. The concern of the orchards is in attracting new business, not satisfying existing customers. Additionally, customers under contract have likely already agreed to a non-discount price.
  2. This item may be problematic, but does not address the concerns of the passage as a whole.
  3. This approach is not a flaw in the plan, but a possible, potentially unethical, solution.
  4. The large orchard's greater inventory will give them a flexibility that will outlast the small orchard. The small orchard could run out of stock before the large orchard has sold even a third of its oranges.
  5. This item makes it sound as if the two orchards will not actually be in competition, but does not address the soundness of the small orchard's plan.

Answer: D


I don't understand this explanation for why D is correct.
If the small orchard has run out of stock (meaning they sell everything), why is that a problem? The goal is to attract customers. But if they are sold out completely, that means that goal is achieved.

Only option B prevents them from achiving this goal of getting more customers. If they dont advertise the lower price (which neighbouring orchard has announced), then they wont achieve the goal.
Any thoughts?


Fully agree with this post! Matched my thinking 100%) Any chance to get the feedback from creators of this Q? Bunuel

Thanks!



i thought the same and marked B .. Can someone explain this ?

E-gmat
Intern
Intern
avatar
B
Joined: 07 May 2016
Posts: 48
Location: India
Concentration: Other, Entrepreneurship
Schools: IIMA (D)
Re: V02-23 [#permalink]

Show Tags

New post 24 Jul 2016, 05:22
Hi Expert,

Though i marked the correct option choice, but i understand that question stem is incorrect.

As per option D, the small orchard will be able to attract the customers. Therefore the plan is effective in attracting the customers.

The question stem should be "Which of the following, if true, points to the most serious flaw of the small orchard's plan to attract business by matching the prices of the competing orchard?"

" to attract business " should be deleted from the question stem. Option D states that following the plan would be detrimental for the business of small orchard.

Secondly the argument states that size of neighboring orchard is three times the size of small orchard. The explanation incorrectly infers that large orchard has three time the inventory of small orchard.

Experts kindly comment.

Thanks
Sahil
Expert Post
Verbal Expert
User avatar
G
Joined: 14 Dec 2013
Posts: 3315
Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
GMAT ToolKit User Premium Member Reviews Badge
Re: V02-23 [#permalink]

Show Tags

New post 24 Jul 2016, 07:37
sahilmalhotra01 wrote:
Hi Expert,

Though i marked the correct option choice, but i understand that question stem is incorrect.

As per option D, the small orchard will be able to attract the customers. Therefore the plan is effective in attracting the customers.

The question stem should be "Which of the following, if true, points to the most serious flaw of the small orchard's plan to attract business by matching the prices of the competing orchard?"

" to attract business " should be deleted from the question stem. Option D states that following the plan would be detrimental for the business of small orchard.

Secondly the argument states that size of neighboring orchard is three times the size of small orchard. The explanation incorrectly infers that large orchard has three time the inventory of small orchard.

Experts kindly comment.

Thanks
Sahil


Thank you for your points. Certain ambiguous wording and answer choices have been modified accordingly.
Manager
Manager
avatar
B
Joined: 13 Apr 2017
Posts: 63
Re: V02-23 [#permalink]

Show Tags

New post 01 Jun 2017, 19:08
This is a really interesting question indeed. A and B are OFS clearly.
Now, all ideas of C,D,E are not wrong. Nevertheless, E is an inference, C is unethical solution, but D is the flaw of the plan. As a test taker, it is hard to distinguish which one should be the answer.
Perhaps, applying techniques of Kaplan, ones can find some connections with the inventory, and pick D.
Intern
Intern
avatar
B
Joined: 04 Oct 2016
Posts: 13
Re V02-23 [#permalink]

Show Tags

New post 10 Aug 2017, 16:59
I think this is a poor-quality question and I don't agree with the explanation.
Re V02-23   [#permalink] 10 Aug 2017, 16:59
Display posts from previous: Sort by

V02-23

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

Moderators: chetan2u, Bunuel



GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

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®.