PT157.S3.Q18 > Question

SECTION 1 · rc

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Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19

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Question 20 Question 21 Question 22 Question 23 Question 24 Question 25 Question 26 Question 27

SECTION 2 · lr

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SECTION 3 · lr

SECTION 4 · rc

PASSAGE 1

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7

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Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14

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Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22

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Why is the retail profit margin on personal computers very low compared to other popular hi-tech items, even though demand for personal computers increases every year?

This is an EXCEPT question. The four wrong answers will help explain why retail profits on personal computer sales might not be as high as we would expect given the demand for personal computers.

This suggests computers purchased by a store for sale to consumers quickly become obsolete, which could make them harder to sell. If stores carry obsolete computers, this could depress the profits earned on the sale of computers.

This suggests brands want first-time customers to have a good experience. But this doesn’t suggest that profits would be lower for personal computers than we would otherwise expect. If anything, brand loyalty might allow for higher prices on popular brands, increasing profits.

This raises a reasonable possibility that selling personal computers requires hiring more employees, which raises the costs of selling those computers.

Stores might choose lower profits from personal computer sales in order to increase profit from other products.

Greater competition for personal computer sales will likely lead to lower prices, which reduces profit margin.

PrepTest 157 - Section 3 - Question 18

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