Retail Business

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Retail Business

by Neo Anderson » Sun Dec 11, 2011 4:31 pm
The recent upheaval in the office-equipment retail business, in which many small
firms have gone out of business, has been attributed to the advent of office
equipment "superstores" whose high sales volume keeps their prices low. This
analysis is flawed, however, since even today the superstores control a very small
share of the retail market.

Which of the following, if true, would most weaken the argument that the
analysis is flawed?

(A) Most of the larger customers for office equipment purchase under contract
directly from manufacturers and thus do not participate in the retail market.

(B) The superstores' heavy advertising of their low prices has forced prices down
throughout the retail market for office supplies.

(C) Some of the superstores that only recently opened have themselves gone out
of business.

(D) Most of the office equipment superstores are owned by large retailing chains
that also own stores selling other types of goods.

(E) The growing importance of computers in most offices has changed the kind of
office equipment retailers must stock.

OA is B
Why not A?

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by chieftang » Sun Dec 11, 2011 4:57 pm
Neo Anderson wrote:The recent upheaval in the office-equipment retail business, in which many small
firms have gone out of business, has been attributed to the advent of office
equipment "superstores" whose high sales volume keeps their prices low. This
analysis is flawed, however, since even today the superstores control a very small
share of the retail market.

Which of the following, if true, would most weaken the argument that the
analysis is flawed?

(A) Most of the larger customers for office equipment purchase under contract
directly from manufacturers and thus do not participate in the retail market.

(B) The superstores' heavy advertising of their low prices has forced prices down
throughout the retail market for office supplies.

(C) Some of the superstores that only recently opened have themselves gone out
of business.

(D) Most of the office equipment superstores are owned by large retailing chains
that also own stores selling other types of goods.

(E) The growing importance of computers in most offices has changed the kind of
office equipment retailers must stock.

OA is B
Why not A?
The argument is that superstores control a very small share of the retail market. Option A talks about purchases OUTSIDE of the retail market, and therefore doesn't do anything to weaken the argument.

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by tuanquang269 » Sun Dec 11, 2011 8:07 pm
(A) Most of the larger customers for office equipment purchase under contract
directly from manufacturers and thus do not participate in the retail market. => This talks about larger customer, but do not talk about where they will buy office equipment. I presuppose that you were attracted by the word "retail market". Remember, both small firms and superstores belong to retail market. So, this answer is neutral or irrelevant

(B) The superstores' heavy advertising of their low prices has forced prices down
throughout the retail market for office supplies. => This answer open the view that superstores' coverage through out the retail market. So, they affect adversely small businesses

(C) strengthen
(D) neutral
(E)neutral