charleneroche
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Q1 - Megatrash Co., the country's largest waste-disposal

by charleneroche Wed Aug 21, 2013 8:48 pm

Although I chose answer chose D, i would like if you could explain answer choice E. Its tricky because it references legal fees which is mentioned in the stimulus, but I would like to know why it isn't correct.
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ohthatpatrick
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Re: Q1 - Megatrash Co., the country's largest waste-disposal

by ohthatpatrick Thu Aug 22, 2013 3:14 am

Given that Megatrash is losing more and more lawsuits, how is it that Megatrash grows stronger and more profitable?

(E) acquittal means that Megatrash WON the lawsuit, and this answer says that even when they WIN a lawsuit, it costs them more money in legal fees than LOSING a lawsuit would have cost them. So this actually goes AGAINST the idea of getting more profitable.

Taken together with what we were already told, we know that when Megatrash loses a lawsuit, it pays out lots of money in fines. When Megatrash wins a lawsuit, it pays out EVEN MORE money in legal fees.

So we still have no idea how the heck Megatrash has grown stronger and more profitable.

Hope this helps.