kitchen

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kitchen

by simone88 » Sun May 27, 2012 1:11 am
this is from the older version of gmat prep practice 2

Kitchen magazine plans to license the use of its name by a line of cookware. For a magazine, licensing the use of its name for products involves some danger, since if the products disappoint consumers, the magazine's reputation suffers, with consequent reductions in circulation and advertising. However, experts have evaluated the cookware and found it superior to all other cookware advertised in Kitchen. Therefore, Kitchen can collect its licensing fee without endangering its other revenues.
The argument above assumes which of the following?
A. No other line of cookware is superior to that which will carry the Kitchen name.
B. Kitchen will not license the use of its name for any products other than the line of cookware.
C. Makers of cookware will not find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product.
D. Consumers who are not regular readers of Kitchen magazine will be attracted to the cookware by the Kitchen name.
E. Kitchen is one of the most prestigious cooking-related magazines.

I have some questions:
1) As I read the the passage I was expecting some answer like:
"the line of cookware by which Kitchen plans to licens its name, even if it is the best cookware in its magazine, is under the average of cookwares existing"
summurizing I was looking for the assumption: best line of cookware in the magazine implies line that doesn't disappoint consumers (for this reason at first I was thinking about A). Would that be a right answer?
2) if B is false then Kitchen may advertize some bad cookware and this could mine its revenues. So why B is wrong?
Source: — Critical Reasoning |

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by eagleeye » Sun May 27, 2012 3:25 pm
The correct answer should be C. Let me explain.

The conclusion is :
"Kitchen can collect its licensing fee without endangering its other revenues."
If we can find an option, where either Kitchen can't collect the licensing fees or where its "other revenues" can decrease, we will have our answer.

A. No other line of cookware is superior to that which will carry the Kitchen name.
Out of Scope, we don't care about other cookware. NO

B. Kitchen will not license the use of its name for any products other than the line of cookware.
Even if Kitchen gives its name to anyone else, it may increase the revenues, or decrease it, so we don't know for sure that it will affect the revenues adversely. NO

C. Makers of cookware will not find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product.
If the makers of cookware find the Kitchen magazine due to their licensing, a less attractive ad vehicle, they may advertise less thus decreasing the ad revenue of the magazine. Therefore, this choice is correct. YES

D. Consumers who are not regular readers of Kitchen magazine will be attracted to the cookware by the Kitchen name.
This is not in the scope. NO

E. Kitchen is one of the most prestigious cooking-related magazines.
Who cares? Not in scope. NO

Let me know if this helps :)
Last edited by eagleeye on Sun May 27, 2012 6:05 pm, edited 1 time in total.

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by GMAT Kolaveri » Sun May 27, 2012 5:58 pm
Well explained by eagleeye.

Below is another good explanation given by MGMAT instructor.

Kitchen currently gets revenue from magazine sales and advertisers. Kitchen is planning to start receiving a third stream of revenue by putting the Kitchen name on cookware. Because the cookware is good, Kitchen will not suffer from a decreased reputation and will continue to make as much money as before.

What do we have to assume? That putting Kitchen's name on cookware will not have some sort of unintended effect that will reduce revenue overall.

C says that advertisers of OTHER cookware brands (who will now be competing with the Kitchen brand) may not want to advertise in Kitchen magazine anymore since Kitchen is now a competitor. If Kitchen loses this advertising revenue that would hurt the revenue stream and certainly make the conclusion wrong. Thus, we have to ASSUME that this will not happen if Kitchen begins to put its name on cookware.
https://www.manhattangmat.com/forums/kit ... t8354.html
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by Spidy001 » Sun May 27, 2012 6:30 pm
Author has supported stating that these line of cookware is superior and thus Kitchen can earn money through them.

Conclusion - Author also states that it can collect it without endangering its other revenues.

So we need to look at that assumption that supports this conclusion.

A Irrelevant or not addressing how other things wont endager its revenue.
B Irrelevant/Out of scope.
C Correct Answer. States that other cookware companies will continue to advertise with the Kitchen. So kitchen wont lose their license fee.
D Does not address the assumption behind the conclusion.
E Irrelevant.