Tony: A new kind of videocassette has just been developed. ββ βββββ βββ ββββ ββββ ββ ββββ ββββββββ ββ βββ βββ ββββ ββββ βββ βββββ β βββββ ββ βββββ ββββββββββ βββββ ββββββ ββββββ βββββ ββββ ββ βββββββββββββ ββββ ββββββββββ ββ ββββββββ βββ βββββ ββββββ ββββββββ ββ βββ βββ ββββ ββ βββββββββββββ ββββ ββ βββ βββ βββββ
βββββ βββ βββ βββββββββββββ ββββββ ββββ ββββββββ βββ β βββββββ ββ βββ βββββ β βββββ ββββββ βββββ ββββ ββ βββ β ββββ ββ β βββββ ββ ββββββ ββββ ββ βββ βββββ ββββββββ ββ βββββββββ βββ βββββ ββββ ββ βββ ββββββ ββββ ββββββββ βββ ββββββ ββ βββ βββββ ββββ βββββ ββββββ ββββββ βββ βββ ββββ βββββ ββββββββ ββ ββββββββββββ ββββ ββββ β ββββββββ βββ βββββββββ βββββ ββββ ββ ββ ββββ ββ ββββββββββ βββββββ
Without stating her conclusion directly, Anna argues that switching to the new videocassette will not save rental stores much money. Why? Because the actual videocassette costs little compared to royalties, and buying copies of movies more frequently would require the stores to pay those royalties more often.
Anna assumes the new videocassette will not lead to a large increase in rentals. In addition, she assumes that rental stores routinely wear out videocassettes, or would do so if they switch to the new kind. She also assumes that a savings of far less than five percent is not βsignificantly more economicalβ than no savings, and that the royalties paid more often would be paid at a similar price.
Anna's reply is structured to ββββ ββ βββββ βββ ββ βββ βββββββββ ββββββββββββ
The royalties paid ββ βββββ βββββββ βββ ββββββ ββββ ββ βββββββββ βββ βββββββββββ ββββββ
Video rental stores ββββββ ββββββ βββββ βββ βββββββββββββββ ββββββββββββββ ββββββββββ βββββββ ββββββββββ ββ ββββ βββββββββ ββββ ββββββ
The largest part ββ βββ βββ β ββββββββ ββββ ββ ββββ β βββββ ββββ β βββββ ββββββ βββββ ββββ ββββββ βββ βββββββββ βββ βββββ ββββ ββ ββββββββββ ββββ ββββββ
The cost savings ββ βββββ ββββββ ββββββ ββββ βββ ββββββ ββββββββ ββ βββ βββββββ ββββββββββββββ ββββββ ββββ ββββββ ββββββββ ββ βββ ββββ βββββββ ββββ ββββ ββ βββββ ββ ββββββββββββ
If the price β βββββ ββββββ βββββ ββββ ββ βββ β βββββ ββ βββββββββββββ ββββ βββ βββββββββ βββ ββββββ βββ βββ βββββ βββββββ ββ βββ βββββ ββββ βββ βββββββββ