LSAT 120 – Section 4 – Question 01

LSAT 120 - Section 4 - Question 01

October 2005

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Question
QuickView		 Type Tags Answer
Choices		 Curve Question
Difficulty		 Psg/Game/S
Difficulty		 Explanation
PT120 S4 Q01
+LR
+Exp
Resolve reconcile or explain +RRE
Math +Math
A
13%
156
B
81%
162
C
0%
158
D
6%
158
E
0%
152
128
142
156
 +Medium 146.628 +SubsectionMedium

Big-budget movies often gross two or three times the cost of their production and marketing. However, most of the movie industry’s total revenue comes from low-budget movies.

"Surprising" Phenomenon
Why does most of the movie industry’s total revenue come from low-budget movies when big-budget movies often gross two to three times their cost of production and marketing?

Objective
The correct answer must help to explain why the majority of the movie industry’s revenue comes from low-budget films when big-budget films often gross multiple times their cost of production and marketing. The answer must identify how low-budget movies can generate more revenue than big-budget movies even though low-budget movies gross very little money individually.

A
Big-budget movies need to sell many more tickets than do low-budget movies, just to recoup their production costs.
It doesn’t matter how many more tickets big-budget movies must sell than low-budget movies to achieve profitability. The stimulus confirmed that big-budget movies often gross two or three times the cost of their production and marketing, so (A) is irrelevant.
B
There are many more low-budget movies produced than there are big- and medium-budget movies.
If this is true, low-budget movies could generate the movie industry more revenue than big-budget movies even if individual big-budget movies tend to net more profit than individual low-budget movies. There would be more low-budget movies generating profit than big-budget movies.
C
The movie industry’s revenues, when adjusted for inflation, have declined sharply in the last 30 years.
It doesn’t matter if the movie industry’s overall revenues have decreased in the last 30 years. We’re only concerned with why most of the movie industry’s revenue comes from low-budget movies.
D
Big-budget movies, because of their elaborate special effects, cost more in insurance premiums than low-budget movies do.
It doesn’t matter how much big-budget movie insurance premiums cost compared to low-budget movie premiums. The stimulus confirmed that big-budget movies often gross two or three times the cost of their production and marketing, so (D) is irrelevant.
E
The more time a company spends on making a movie the more expensive the movie is.
The stimulus never discusses how long it takes to produce big-budget or low-budget movies. This information doesn’t help us.

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LSAT PrepTest 120 Explanations

Section 1 - Logical Reasoning

Section 2 - Reading Comprehension

Section 3 - Logical Reasoning

Section 4 - Logical Reasoning

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