GMAT Verbal & Essays

" Over time, the costs of processing go down because as organizations learn how to do things better, they become more effi cient. In color fi lm processing, for example, the cost of a 3"by"5"inch print fell from 50 cents for fi ve"day service in 1970 to 20 cents for one"day service in 1984. The same principle applies to the processing of food. And since Olympic Foods will soon celebrate its 25th birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profi ts."

The argument that the cost of processing food due to experience alone, is flawed.

Firstly, the argument does not consider external factors such as such decreases in wages, materials and other costs of production, of which may have had an effect on costs. To strengthen this argument, the techniques developed by Olympic Foods that have resulted in a decrease to the cost of production can be discussed. In an effort to demonstrate internal efficiencies being responsible for cost decreases as opposed to external factors.

Secondly, the argument compares color film processing to that of food processing without describing what makes these two processing types and the environment in which they operate, as being similar. Therefore not providing a convincing argument why the processing of food will yield the same decrease in costs to that experienced in color film processing. To strengthen this argument similarities of color film processing to that of food processing to be discussed and what techniques or efficiencies have been achieved in color film processing.

The sole argument that experience alone will yield a decrease in costs and maximise profits is flawed. If the argument includes the items discussed above, the argument would have been more thorough and conclusive.