PrepTest 29, Section 2, Question 9
Jean: Our navigational equipment sells for $1,100 and dominates the high end of the market, but more units are sold by our competitors in the $700 to $800 range. We should add a low-cost model, which would allow us to increase our overall sales while continuing to dominate the high end.
Jean: Our navigational equipment sells for $1,100 and dominates the high end of the market, but more units are sold by our competitors in the $700 to $800 range. We should add a low-cost model, which would allow us to increase our overall sales while continuing to dominate the high end.
Tracy: I disagree. Our equipment sells to consumers who associate our company with quality. Moving into the low-cost market would put our competitors in the high-cost market on an equal footing with us, which could hurt our overall sales.
Jean: Our navigational equipment sells for $1,100 and dominates the high end of the market, but more units are sold by our competitors in the $700 to $800 range. We should add a low-cost model, which would allow us to increase our overall sales while continuing to dominate the high end.
Tracy: I disagree. Our equipment sells to consumers who associate our company with quality. Moving into the low-cost market would put our competitors in the high-cost market on an equal footing with us, which could hurt our overall sales.
Jean: Our navigational equipment sells for $1,100 and dominates the high end of the market, but more units are sold by our competitors in the $700 to $800 range. We should add a low-cost model, which would allow us to increase our overall sales while continuing to dominate the high end.
Jean's and Tracy's statements most strongly suggest that they disagree over which one of the following propositions?
There is a greater potential for profits in the low-cost market than there is in the high-cost market.
The proposed cheaper model, if it were made available, would sell to customers who would otherwise be buying the company's present model.
The company could dominate the low-cost market in the same way it has dominated the high-cost market.
The company would no longer dominate the high-cost market if it began selling a low-cost model.
Decreased sales of the high-cost model would result in poor sales for the proposed low-cost model.
0 Comments