PrepTest 54, Section 3, Question 18
Teresa: If their goal is to maximize profits, film studios should concentrate on producing big-budget films rather than small-budget ones. For, unlike big-budget films, small-budget films never attract mass audiences. While small-budget films are less expensive to produce and, hence, involve less risk of unprofitability than big-budget films, low production costs do not guarantee the highest possible profits.
Teresa: If their goal is to maximize profits, film studios should concentrate on producing big-budget films rather than small-budget ones. For, unlike big-budget films, small-budget films never attract mass audiences. While small-budget films are less expensive to produce and, hence, involve less risk of unprofitability than big-budget films, low production costs do not guarantee the highest possible profits.
Teresa: If their goal is to maximize profits, film studios should concentrate on producing big-budget films rather than small-budget ones. For, unlike big-budget films, small-budget films never attract mass audiences. While small-budget films are less expensive to produce and, hence, involve less risk of unprofitability than big-budget films, low production costs do not guarantee the highest possible profits.
Teresa: If their goal is to maximize profits, film studios should concentrate on producing big-budget films rather than small-budget ones. For, unlike big-budget films, small-budget films never attract mass audiences. While small-budget films are less expensive to produce and, hence, involve less risk of unprofitability than big-budget films, low production costs do not guarantee the highest possible profits.
Which one of the following is an assumption required by Teresa's argument?
Each big-budget film is guaranteed to attract a mass audience.
A film studio cannot make both big-budget films and small-budget films.
A film studio will not maximize its profits unless at least some of its films attract mass audiences.
It is impossible to produce a big-budget film in a financially efficient manner.
A film studio's primary goal should be to maximize profits.
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