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16 Sep 2014, 01:47
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
52% (01:27) correct
48%
(01:39)
wrong
based on 117
sessions
History
Date
Time
Result
Not Attempted Yet
A certain city offers publicly owned, desirable billboard-advertising space at heavily discounted monthly rates to locally owned businesses. Since the implementation of this policy, the city has increased the amount of billboard space sold per month. Nevertheless, the city could increase its revenues by revoking these discounts.
Which of the following, if true, most strongly supports the claim above regarding the city's revenues?
A. The amount of discount generally offered is carefully calculated to represent the minimum needed to drive sales to local businesses.
B. The discount was announced through select news channels and websites, but did not receive sufficient coverage for many local businesses to hear about it.
C. Many local businesses sub-lease their billboard space to non-local businesses at a significant markup.
D. For established local businesses, the purpose of this promotion is to allow such local businesses to fortify their market position against new chain stores that generally have better access to high-visibility advertisement space.
E. Prior to the implementation of the discount, many city-owned billboards went empty for lack of interested buyers.
Which of the following, if true, most strongly supports the claim above regarding the city's revenues?
A. The amount of discount generally offered is carefully calculated to represent the minimum needed to drive sales to local businesses.
B. The discount was announced through select news channels and websites, but did not receive sufficient coverage for many local businesses to hear about it.
C. Many local businesses sub-lease their billboard space to non-local businesses at a significant markup.
D. For established local businesses, the purpose of this promotion is to allow such local businesses to fortify their market position against new chain stores that generally have better access to high-visibility advertisement space.
E. Prior to the implementation of the discount, many city-owned billboards went empty for lack of interested buyers.
16 Sep 2014, 01:47
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Official Solution:
A certain city offers publicly owned, desirable billboard-advertising space at heavily discounted monthly rates to locally owned businesses. Since the implementation of this policy, the city has increased the amount of billboard space sold per month. Nevertheless, the city could increase its revenues by revoking these discounts.
Which of the following, if true, most strongly supports the claim above regarding the city's revenues?
A. The amount of discount generally offered is carefully calculated to represent the minimum needed to drive sales to local businesses.
B. The discount was announced through select news channels and websites, but did not receive sufficient coverage for many local businesses to hear about it.
C. Many local businesses sub-lease their billboard space to non-local businesses at a significant markup.
D. For established local businesses, the purpose of this promotion is to allow such local businesses to fortify their market position against new chain stores that generally have better access to high-visibility advertisement space.
E. Prior to the implementation of the discount, many city-owned billboards went empty for lack of interested buyers.
The author states that a city gives discounted monthly advertising rates to local businesses on publicly owned billboard space. Further, the author claims that though this discount has driven sales, the city could increase revenues by revoking the discount.
We're asked to support the author's claim about revenues. The author claims that although the discount increased sales, it would generate more revenue to revoke the discount. The correct answer will also indicate this.
Choice C says that local businesses re-sell their advertising space to non-local businesses "at a significant markup." In other words, local businesses are selling the valuable ad space to buyers who will pay more. If the city revoked their discount, they could boost revenues by selling the desirable ad space at a higher rate to non-local businesses. Choice C is correct.
Choice A: This choice explains how the discount is calculated. In fact, it suggests that the city is offering discounts only to the extent that they are necessary to maximize revenues. It does not suggest that revoking the discount would increase revenues.
Choice B: Out of scope. This choice suggests the discount was not promoted effectively. It does not, however, suggest that the city would have higher revenues if the discount were discontinued.
Choice D: Irrelevant. The rationale underlying the discount, to give local businesses "better access to high-visibility advertisement space" does NOT address whether ad revenues would increase if no discount had been offered.
Choice E: Opposite. If the billboards were previously empty, they would have generated no revenue. The discount has increased the amount of billboard space sold per month. Thus, if true, this choice weakens the author's argument that revoking the discount could increase revenues.
Answer: C
A certain city offers publicly owned, desirable billboard-advertising space at heavily discounted monthly rates to locally owned businesses. Since the implementation of this policy, the city has increased the amount of billboard space sold per month. Nevertheless, the city could increase its revenues by revoking these discounts.
Which of the following, if true, most strongly supports the claim above regarding the city's revenues?
A. The amount of discount generally offered is carefully calculated to represent the minimum needed to drive sales to local businesses.
B. The discount was announced through select news channels and websites, but did not receive sufficient coverage for many local businesses to hear about it.
C. Many local businesses sub-lease their billboard space to non-local businesses at a significant markup.
D. For established local businesses, the purpose of this promotion is to allow such local businesses to fortify their market position against new chain stores that generally have better access to high-visibility advertisement space.
E. Prior to the implementation of the discount, many city-owned billboards went empty for lack of interested buyers.
The author states that a city gives discounted monthly advertising rates to local businesses on publicly owned billboard space. Further, the author claims that though this discount has driven sales, the city could increase revenues by revoking the discount.
We're asked to support the author's claim about revenues. The author claims that although the discount increased sales, it would generate more revenue to revoke the discount. The correct answer will also indicate this.
Choice C says that local businesses re-sell their advertising space to non-local businesses "at a significant markup." In other words, local businesses are selling the valuable ad space to buyers who will pay more. If the city revoked their discount, they could boost revenues by selling the desirable ad space at a higher rate to non-local businesses. Choice C is correct.
Choice A: This choice explains how the discount is calculated. In fact, it suggests that the city is offering discounts only to the extent that they are necessary to maximize revenues. It does not suggest that revoking the discount would increase revenues.
Choice B: Out of scope. This choice suggests the discount was not promoted effectively. It does not, however, suggest that the city would have higher revenues if the discount were discontinued.
Choice D: Irrelevant. The rationale underlying the discount, to give local businesses "better access to high-visibility advertisement space" does NOT address whether ad revenues would increase if no discount had been offered.
Choice E: Opposite. If the billboards were previously empty, they would have generated no revenue. The discount has increased the amount of billboard space sold per month. Thus, if true, this choice weakens the author's argument that revoking the discount could increase revenues.
Answer: C
16 Sep 2014, 16:19
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Though I agree with and understand the OE, I wish to discuss my reasoning for choosing B.
B says that discount was not promoted effectively -> the increase in billboard space was not due to discounts (as the news did not reach many local businesses) -> Even if discounts are revoked the same local businesses will still buy the Billboard space -> So more revenue after revoking discount.
Doesn't it strengthen the argument this way? Experts, please elaborate.
B says that discount was not promoted effectively -> the increase in billboard space was not due to discounts (as the news did not reach many local businesses) -> Even if discounts are revoked the same local businesses will still buy the Billboard space -> So more revenue after revoking discount.
Doesn't it strengthen the argument this way? Experts, please elaborate.
