Exams Net
Unrestricted Exams Practice
Home
Exams
Banking
CUET
Defence
Engineering
Finance
GATE
Insurance
International
JEE
LAW
MBA
MCA
Medical
Other
Police
PSC
RRB
SSC
State Govt
Subjectwise
Teacher
SET Exams
UPSC
Aptitude
Algebra and Higher Mathematics
Arithmetic
Commercial Mathematics
Data Based Mathematics
Geometry and Mensuration
Number System and Numeracy
Problem Solving
Board Exams
Andhra
Bihar
CBSE
Gujarat
Haryana
ICSE
Jammu and Kashmir
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Odisha
Tamil Nadu
Telangana
Uttar Pradesh
English
Competitive English
CBSE
CBSE Class 10 Solutions
CBSE Class 12 Solutions
CBSE Question Papers (Pdf)
NCERT Books (Pdf)
NCERT Exemplar Books (Pdf)
NCERT Study Notes (Pdf)
CBSE Study Concepts (Pdf)
NCERT Text Book Class 11 Solutions
NCERT Text Book Class 12 Solutions
ICSE Class 10 Papers
Certifications
Technical
Cloud Tech Certifications
Security Tech Certifications
Management
IT Infrastructure
More
About
Contact Us
Our Apps
Privacy
+
-
Default
Dark
Blue
Green
Violet
Crimson
Red
Cafe
Gold
Orange
Olive
Grey
Test Index
GMAT Verbal Reasoning Practice Test 1
Show Para
Hide Para
Share question:
© examsnet.com
Question : 32 of 100
Marks:
+1
,
-0
Morning Glory, the coffee shop on the corner, has lost nearly 50% of its business because a national retail coffee chain opened up a store down the street. Instead of closing up shop, the owner of Morning.
Glory plans to draw in customers by offering coffee, tea, and pastries at much lower prices than the national coffee chain.
The owner’s plan of action is based on all of the following assumptions EXCEPT
some customers will choose the coffee shop that offers the lowest price.
the quality of Morning Glory’s coffee is comparable to that of the national coffee chain.
Morning Glory can afford to cut its profit margin in order to lower prices.
Morning Glory’s customers are very loyal.
the national coffee chain will not lower its prices in order to compete with Morning Glory.
Validate
Go to Question:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Prev Question
Next Question
Advertisements