PrepTest 93+, Section 3, Question 18
Consumer demand for personal computers continues to increase each year, which might lead one to think that the profits earned selling personal computers at the retail level are very high relative to total retail sales of personal computers. Yet the retail profit margin on personal computer sales is extremely low compared to that of other popular high-technology items.
Consumer demand for personal computers continues to increase each year, which might lead one to think that the profits earned selling personal computers at the retail level are very high relative to total retail sales of personal computers. Yet the retail profit margin on personal computer sales is extremely low compared to that of other popular high-technology items.
Consumer demand for personal computers continues to increase each year, which might lead one to think that the profits earned selling personal computers at the retail level are very high relative to total retail sales of personal computers. Yet the retail profit margin on personal computer sales is extremely low compared to that of other popular high-technology items.
Consumer demand for personal computers continues to increase each year, which might lead one to think that the profits earned selling personal computers at the retail level are very high relative to total retail sales of personal computers. Yet the retail profit margin on personal computer sales is extremely low compared to that of other popular high-technology items.
Each of the following, if true, helps to resolve the apparent discrepancy described above except:
Rapid innovation in computer technology increases the likelihood of a store's stock becoming obsolete.
Satisfaction with their first personal computer tends to make customers very loyal to that particular brand.
A customer needs more help from store employees when buying a personal computer than when buying other high-technology items.
Many retail stores have low prices on personal computers in order to bring in customers who might buy software and accessories.
An increase in the number of discount retail outlets selling personal computers has intensified the competition for customers.
Explanations
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