Because postage rates are rising, Home Decorator magazine plans to maximize its profits by reducing by one half the number of issues it publishes each year. The quality of articles, the number of articles published per year, and the subscription price will not change. Market research shows that neither subscribers nor advertisers will be lost if the magazine’s plan is instituted. Which of the following, if true, provides the strongest evidence that the magazine’s profits are likely to decline if the plan is instituted?

Question

Examsnet · Accepted Answer

Correct Answer is : Most of the advertisers that purchase advertising space in the magazine will continue to spend the same amount on advertising per issue as they have in the past.

GMAT Verbal Reasoning Practice Test 6