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RonPurewal
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Re: GMAT PREP Tricky cr question...a manufacturer of workstation

by RonPurewal Sat Nov 21, 2015 8:58 am

notice the blue part:
PuneetG652 Wrote:A manufacturer of workstations for computer-aided design seeks to increase sales to its most important corporate customers. Its strategy is to publish very low list prices for workstations in order to generate interest among the buyers for those corporations.


according to the blue part, the point of 'publishing very low list prices' is to attract MORE buyers.

also, this is just everyday common sense!
when stores/merchants place merchandise on sale, they often attract far more buyers, and thus generate more revenue. (the single day during which U.S. merchants make the most revenue is black friday—the day after thanksgiving—when discounts are deepest... in other words, when prices are lowest.)

This decreases the revenue generation...


this ^^ would only be true if the lower prices attracted zero additional buyers. that's not a reasonable thing to assume.