GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 18 Jan 2019, 18:21

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 in January
PrevNext
SuMoTuWeThFrSa
303112345
6789101112
13141516171819
20212223242526
272829303112
Open Detailed Calendar
  • Free GMAT Strategy Webinar

     January 19, 2019

     January 19, 2019

     07:00 AM PST

     09:00 AM PST

    Aiming to score 760+? Attend this FREE session to learn how to Define your GMAT Strategy, Create your Study Plan and Master the Core Skills to excel on the GMAT.
  • FREE Quant Workshop by e-GMAT!

     January 20, 2019

     January 20, 2019

     07:00 AM PST

     07:00 AM PST

    Get personalized insights on how to achieve your Target Quant Score.

Which of the following best completes the passage below? According to

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

Hide Tags

 
Director
Director
User avatar
G
Joined: 23 Feb 2015
Posts: 592
GMAT 1: 720 Q49 V40
GMAT ToolKit User Premium Member
Which of the following best completes the passage below? According to  [#permalink]

Show Tags

New post 25 Mar 2017, 00:58
3
3
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

57% (01:19) correct 43% (01:45) wrong based on 143 sessions

HideShow timer Statistics

Which of the following best completes the passage below?
According to neoclassical economics, people have rational preferences which can be ordered based on their value, or utility, to the individual. All people act to maximize utility and are assumed to make decisions based on full information. Businesses, on the other hand, seek to maximize profits. If these premises are true____________
A. People do not engage in irrational actions.
B. Businesses do not order their preferences based on value.
C. A business that seeks to maximize its profits should address the rational preferences of individuals.
D. The utility of a preference is based on the amount of profit it brings an individual or business.
E. The goals of businesses and individuals are incompatible.


Source: McGraw-Hill's GMAT

_________________

“The heights by great men reached and kept were not attained in sudden flight but, they while their companions slept, they were toiling upwards in the night.”
― Henry Wadsworth Longfellow

Board of Directors
User avatar
V
Status: Stepping into my 10 years long dream
Joined: 18 Jul 2015
Posts: 3627
Premium Member Reviews Badge
Re: Which of the following best completes the passage below? According to  [#permalink]

Show Tags

New post 01 Apr 2017, 04:56
iMyself wrote:
Which of the following best completes the passage below?
According to neoclassical economics, people have rational preferences which can be ordered based on their value, or utility, to the individual. All people act to maximize utility and are assumed to make decisions based on full information. Businesses, on the other hand, seek to maximize profits. If these premises are true____________
A. People do not engage in irrational actions.
B. Businesses do not order their preferences based on value.
C. A business that seeks to maximize its profits should address the rational preferences of individuals.
D. The utility of a preference is based on the amount of profit it brings an individual or business.
E. The goals of businesses and individuals are incompatible.


Source: McGraw-Hill's GMAT


Can someone please explain this question? How can we say rational preference will give maximum profits?
_________________

My GMAT Story: From V21 to V40
My MBA Journey: My 10 years long MBA Dream
My Secret Hacks: Best way to use GMATClub | Importance of an Error Log!
Verbal Resources: All SC Resources at one place | All CR Resources at one place
Blog: Subscribe to Question of the Day Blog
GMAT Club Inbuilt Error Log Functionality - View More.
New Visa Forum - Ask all your Visa Related Questions - here.
New! Best Reply Functionality on GMAT Club!
Find a bug in the new email templates and get rewarded with 2 weeks of GMATClub Tests for free
Check our new About Us Page here.

Current Student
avatar
G
Joined: 14 Mar 2011
Posts: 136
GMAT 1: 760 Q50 V42
Premium Member Reviews Badge
Re: Which of the following best completes the passage below? According to  [#permalink]

Show Tags

New post 01 Apr 2017, 10:27
I am not sure how C is the correct answer...
C. A business that seeks to maximize its profits should address the rational preferences of individuals.--->Where is the compulsion here that business should do something...

E seems to be the best one here...
_________________

If you find my posts/replies helpful, please take a moment to click on the "kudos" icon.

Senior Manager
Senior Manager
avatar
G
Joined: 09 Feb 2015
Posts: 359
Location: India
Concentration: Social Entrepreneurship, General Management
GMAT 1: 690 Q49 V34
GMAT 2: 720 Q49 V39
GPA: 2.8
Premium Member Reviews Badge CAT Tests
Re: Which of the following best completes the passage below? According to  [#permalink]

Show Tags

New post 04 Apr 2017, 02:31
iMyself wrote:
Which of the following best completes the passage below?
According to neoclassical economics, people have rational preferences which can be ordered based on their value, or utility, to the individual. All people act to maximize utility and are assumed to make decisions based on full information. Businesses, on the other hand, seek to maximize profits. If these premises are true____________
A. People do not engage in irrational actions.
B. Businesses do not order their preferences based on value.
C. A business that seeks to maximize its profits should address the rational preferences of individuals.
D. The utility of a preference is based on the amount of profit it brings an individual or business.
E. The goals of businesses and individuals are incompatible.


Source: McGraw-Hill's GMAT



IMO

The goal of business is to maximize profits.Individuals tend to make rational preferences based on the factors mentioned above.
so if businesses need to make profit they need sell goods that address the customer preferences.
Since customers tend to buy things that are of value to them ,there is a high probability of making profits on such goods.

godot53, abhimahna
Non-Human User
User avatar
Joined: 01 Oct 2013
Posts: 3577
Premium Member
Re: Which of the following best completes the passage below? According to  [#permalink]

Show Tags

New post 19 Dec 2018, 09:00
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

-
April 2018: New Forum dedicated to Verbal Strategies, Guides, and Resources

GMAT Club Bot
Re: Which of the following best completes the passage below? According to &nbs [#permalink] 19 Dec 2018, 09:00
Display posts from previous: Sort by

Which of the following best completes the passage below? According to

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


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| 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®.