GMAT Critical Reasoning
The Plexis Corporation, a leading computer chip manufacturer, is currently developing a new chip, which is faster and more effi cient than any computer chip currently in use. The new chip will be released for sale in twelve months. Plexis' market research has shown that initial sales of the new chip would be maximized by starting to advertise it now, but the company has decided to wait another six months before doing so.
Which of the following, if true, provides the Plexis Corporation with the best reason for postponing advertising its new chip?
- A Some computer users are reluctant to purchase new computer products when they are fi rst released.
- B The cost of an advertising campaign capable of maximizing initial sales of the new chip would be no greater than campaigns previously undertaken by Plexis.
- C Advertising the new chip now will signifi cantly decrease sales of Plexis' current line of computer chips.
- D Plexis' major rivals in the computer chip manufacturing business are developing a chip with capabilities that are comparable to those of Plexis' new chip.
- E Taking full advantage of the capacities of the new chip will require substantial adjustments in other segments of the computer industry.
Correct Answer: C