The Plexis Corporation, a leading computer chip manufacturer, is currently developing a new chip, which is faster and more efficient than any computer chip currently in use. The new chip will be released for sale in twelve months. Plexis' market research has shown that initial sales of the new chip would be maximized by starting to advertise it now, but the company has decided to wait another six months before doing so.
Which of the following, if true, provides the Plexis Corporation with the best reason for postponing advertising its new chip?
(A) Some computer users are reluctant to purchase new computer products when they are fi rst released.
(B) The cost of an advertising campaign capable of maximizing initial sales of the new chip would be no greater than campaigns previously undertaken by Plexis.
(C) Advertising the new chip now will significantly decrease sales of Plexis' current line of computer chips.
(D) Plexis' major rivals in the computer chip manufacturing business are developing a chip with capabilities that are comparable to those of Plexis' new chip.
(E) Taking full advantage of the capacities of the new chip will require substantial adjustments in other segments of the computer industry.
Source : OG12
Please help me with the question above. I was stuck between C and E. Can someone please explain why is E incorrect?
Thanks
The Plexis Corporation, a leading computer chip manufacturer
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Premise: Sales of the new chip would be maximized by starting to advertise it now.melguy wrote:The Plexis Corporation, a leading computer chip manufacturer, is currently developing a new chip, which is faster and more efficient than any computer chip currently in use. The new chip will be released for sale in twelve months. Plexis' market research has shown that initial sales of the new chip would be maximized by starting to advertise it now, but the company has decided to wait another six months before doing so.
Which of the following, if true, provides the Plexis Corporation with the best reason for postponing advertising its new chip?
(A) Some computer users are reluctant to purchase new computer products when they are fi rst released.
(B) The cost of an advertising campaign capable of maximizing initial sales of the new chip would be no greater than campaigns previously undertaken by Plexis.
(C) Advertising the new chip now will significantly decrease sales of Plexis' current line of computer chips.
(D) Plexis' major rivals in the computer chip manufacturing business are developing a chip with capabilities that are comparable to those of Plexis' new chip.
(E) Taking full advantage of the capacities of the new chip will require substantial adjustments in other segments of the computer industry.
Source : OG12
Please help me with the question above. I was stuck between C and E. Can someone please explain why is E incorrect?
Thanks
Decision: The company has decided to wait another six months before doing so.
The correct answer choice must justify the company's decision to wait.
C: Advertising the new chip now will significantly decrease sales of Plexis' current line of computer chips.
This option justifies the decision to wait: the company does not want to decrease sales of its current line of chips.
The correct answer is C.
E: Taking full advantage of the capacities of the new chip will require substantial adjustments in other segments of the computer industry.
This option could imply that the chip should be advertised NOW in order to give other segments of the industry sufficient time to make the required adjustments.
Since the correct answer choice must strengthen the company's decision to WAIT, eliminate E.
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
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