Because production costs are rising, a local theater

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Because production costs are rising, a local theater company is planning to maximize its profits by reducing by half the number of plays it stages per season. The quality of performances, their frequency, and the admission price will not change. Furthermore, neither the audience nor the sponsors, an important source of theater funding, is expected to be lost if the plan is instituted.

Which of the following, if true, provides the strongest evidence that the theater`s profits are not likely to increase if the plan is instituted?



(A)The majority of theatergoers are concerned about possible loss of production quality.

(B)Most sponsors will continue to donate the same amount of money per production as they have in the past.

(C)Next year`s production costs are expected to be on average 20% higher for each production.

(D)Many theater lovers would continue to attend performances regularly even if the admission fee were increased.

(E)Performers` and technical personnel`s salaries will not change in the near future.

OA B
Last edited by guerrero on Sun Oct 13, 2013 7:08 am, edited 1 time in total.

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by rakeshd347 » Sat Oct 12, 2013 4:01 pm
guerrero wrote:Because production costs are rising, a local theater company is planning to maximize its profits by reducing by half the number of plays it stages per season. The quality of performances, their frequency, and the admission price will not change. Furthermore, neither the audience nor the sponsors, an important source of theater funding, is expected to be lost if the plan is instituted.

Which of the following, if true, provides the strongest evidence that the theater`s profits are not likely to increase if the plan is instituted?



(A)The majority of theatergoers are concerned about possible loss of production quality.

(B)Most sponsors will continue to donate the same amount of money per production as they have in the past.

(C)Next year`s production costs are expected to be on average 20% higher for each production.

(D)Many theater lovers would continue to attend performances regularly even if the admission fee were increased.

(E)Performers` and technical personnel`s salaries will not change in the near future.
This is a weaken question. Correct answer is B.
The theater is reducing the number of shows so that it can increase the profit. So we need to find out an option which says that this plan will not succeed.
Option B says that sponsors will continue to donate the same amount of money per production....so if they were paying $100 per production then they will pay $100 per production too but now there will be less number of productions. So theatre will loose the money from sponsors.

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by vinay1983 » Sat Oct 12, 2013 5:57 pm
Hmm B-says they will pay you the same irrelevant of the cost involved. Yes this hurts. I spend 100, 200, 300 per production over a period of time and i need funding in that manner too. What if i do not get it, i will be at sea. So yes. And here"most" is correct since it represents a larger part part of the plays of the theatre and is indirectly referred in the prompt
You can, for example never foretell what any one man will do, but you can say with precision what an average number will be up to!

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by richachampion » Fri Aug 12, 2016 11:08 am
I was down to B and D. whats wrong with D?
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