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If the minimum wage increases again, MacDowell’s will have to increase the prices it charges for its products. And if that happens, MacDowell’s has a choice: it can spend more on advertising to attract more customers, or its sales and profitability will decrease. But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.
Which one of the following conclusions can be logically drawn from the statements above?
  • a)
    Unless the minimum wage increases, MacDowell’s will continue to remain profitable.
  • b)
    If the minimum wage increases, MacDowell’s will no longer be able to remain profitable.
  • c)
    MacDowell’s will see its profitability increase if the minimum wage does not increase.
  • d)
    MacDowell’s will be unable to maintain its current profitability if the minimum wage increases.
  • e)
    If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased.
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
If the minimum wage increases again, MacDowell’s will have to in...
A. Unless the minimum wage increases, MacDowell’s will continue to remain profitable. This option cannot be logically drawn from the given statements. The argument discusses the potential impact of a minimum wage increase on MacDowell's profitability, but it does not provide any information about the company's profitability in the absence of a minimum wage increase. Therefore, we cannot conclude that MacDowell's will continue to remain profitable if the minimum wage doesn't increase.
B. If the minimum wage increases, MacDowell’s will no longer be able to remain profitable. This option can be logically drawn from the statements. The argument indicates that if the minimum wage increases, MacDowell's will have to increase its prices. This implies that the company's costs will rise, and if it is unable to offset those costs or maintain its profitability through other means, it may no longer be able to remain profitable.
C. MacDowell’s will see its profitability increase if the minimum wage does not increase. This option cannot be logically drawn from the given statements. The argument focuses on the potential negative impact of a minimum wage increase on MacDowell's profitability but does not provide any information about the profitability in the absence of a minimum wage increase. Therefore, we cannot conclude that MacDowell's profitability will increase if the minimum wage remains unchanged.
D. MacDowell’s will be unable to maintain its current profitability if the minimum wage increases. This option can be logically drawn from the statements. The argument states that if the minimum wage increases, MacDowell's will have to increase its prices, and even if they choose to spend more on advertising, it will still result in an overall decrease in profitability. Therefore, it can be inferred that MacDowell's will be unable to maintain its current profitability if the minimum wage increases.
E. If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased. This option cannot be logically drawn from the given statements. The argument discusses the potential consequences of a minimum wage increase on MacDowell's profitability, but it does not establish a causal relationship between a reduction in profitability and an increase in the minimum wage. Other factors could also contribute to a reduction in profitability, so we cannot conclude that a reduction in profitability specifically indicates an increase in the minimum wage.
Based on the explanations above, the correct answer is option D.
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Most Upvoted Answer
If the minimum wage increases again, MacDowell’s will have to in...
A. Unless the minimum wage increases, MacDowell’s will continue to remain profitable. This option cannot be logically drawn from the given statements. The argument discusses the potential impact of a minimum wage increase on MacDowell's profitability, but it does not provide any information about the company's profitability in the absence of a minimum wage increase. Therefore, we cannot conclude that MacDowell's will continue to remain profitable if the minimum wage doesn't increase.
B. If the minimum wage increases, MacDowell’s will no longer be able to remain profitable. This option can be logically drawn from the statements. The argument indicates that if the minimum wage increases, MacDowell's will have to increase its prices. This implies that the company's costs will rise, and if it is unable to offset those costs or maintain its profitability through other means, it may no longer be able to remain profitable.
C. MacDowell’s will see its profitability increase if the minimum wage does not increase. This option cannot be logically drawn from the given statements. The argument focuses on the potential negative impact of a minimum wage increase on MacDowell's profitability but does not provide any information about the profitability in the absence of a minimum wage increase. Therefore, we cannot conclude that MacDowell's profitability will increase if the minimum wage remains unchanged.
D. MacDowell’s will be unable to maintain its current profitability if the minimum wage increases. This option can be logically drawn from the statements. The argument states that if the minimum wage increases, MacDowell's will have to increase its prices, and even if they choose to spend more on advertising, it will still result in an overall decrease in profitability. Therefore, it can be inferred that MacDowell's will be unable to maintain its current profitability if the minimum wage increases.
E. If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased. This option cannot be logically drawn from the given statements. The argument discusses the potential consequences of a minimum wage increase on MacDowell's profitability, but it does not establish a causal relationship between a reduction in profitability and an increase in the minimum wage. Other factors could also contribute to a reduction in profitability, so we cannot conclude that a reduction in profitability specifically indicates an increase in the minimum wage.
Based on the explanations above, the correct answer is option D.
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Question Description
If the minimum wage increases again, MacDowell’s will have to increase the prices it charges for its products. And if that happens, MacDowell’s has a choice: it can spend more on advertising to attract more customers, or its sales and profitability will decrease. But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.Which one of the following conclusions can be logically drawn from the statements above?a)Unless the minimum wage increases, MacDowell’s will continue to remain profitable.b)If the minimum wage increases, MacDowell’s will no longer be able to remain profitable.c)MacDowell’s will see its profitability increase if the minimum wage does not increase.d)MacDowell’s will be unable to maintain its current profitability if the minimum wage increases.e)If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased.Correct answer is option 'D'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about If the minimum wage increases again, MacDowell’s will have to increase the prices it charges for its products. And if that happens, MacDowell’s has a choice: it can spend more on advertising to attract more customers, or its sales and profitability will decrease. But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.Which one of the following conclusions can be logically drawn from the statements above?a)Unless the minimum wage increases, MacDowell’s will continue to remain profitable.b)If the minimum wage increases, MacDowell’s will no longer be able to remain profitable.c)MacDowell’s will see its profitability increase if the minimum wage does not increase.d)MacDowell’s will be unable to maintain its current profitability if the minimum wage increases.e)If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the minimum wage increases again, MacDowell’s will have to increase the prices it charges for its products. And if that happens, MacDowell’s has a choice: it can spend more on advertising to attract more customers, or its sales and profitability will decrease. But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.Which one of the following conclusions can be logically drawn from the statements above?a)Unless the minimum wage increases, MacDowell’s will continue to remain profitable.b)If the minimum wage increases, MacDowell’s will no longer be able to remain profitable.c)MacDowell’s will see its profitability increase if the minimum wage does not increase.d)MacDowell’s will be unable to maintain its current profitability if the minimum wage increases.e)If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased.Correct answer is option 'D'. Can you explain this answer?.
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But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.Which one of the following conclusions can be logically drawn from the statements above?a)Unless the minimum wage increases, MacDowell’s will continue to remain profitable.b)If the minimum wage increases, MacDowell’s will no longer be able to remain profitable.c)MacDowell’s will see its profitability increase if the minimum wage does not increase.d)MacDowell’s will be unable to maintain its current profitability if the minimum wage increases.e)If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of If the minimum wage increases again, MacDowell’s will have to increase the prices it charges for its products. And if that happens, MacDowell’s has a choice: it can spend more on advertising to attract more customers, or its sales and profitability will decrease. But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.Which one of the following conclusions can be logically drawn from the statements above?a)Unless the minimum wage increases, MacDowell’s will continue to remain profitable.b)If the minimum wage increases, MacDowell’s will no longer be able to remain profitable.c)MacDowell’s will see its profitability increase if the minimum wage does not increase.d)MacDowell’s will be unable to maintain its current profitability if the minimum wage increases.e)If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased.Correct answer is option 'D'. 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But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.Which one of the following conclusions can be logically drawn from the statements above?a)Unless the minimum wage increases, MacDowell’s will continue to remain profitable.b)If the minimum wage increases, MacDowell’s will no longer be able to remain profitable.c)MacDowell’s will see its profitability increase if the minimum wage does not increase.d)MacDowell’s will be unable to maintain its current profitability if the minimum wage increases.e)If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of If the minimum wage increases again, MacDowell’s will have to increase the prices it charges for its products. And if that happens, MacDowell’s has a choice: it can spend more on advertising to attract more customers, or its sales and profitability will decrease. But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.Which one of the following conclusions can be logically drawn from the statements above?a)Unless the minimum wage increases, MacDowell’s will continue to remain profitable.b)If the minimum wage increases, MacDowell’s will no longer be able to remain profitable.c)MacDowell’s will see its profitability increase if the minimum wage does not increase.d)MacDowell’s will be unable to maintain its current profitability if the minimum wage increases.e)If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice If the minimum wage increases again, MacDowell’s will have to increase the prices it charges for its products. And if that happens, MacDowell’s has a choice: it can spend more on advertising to attract more customers, or its sales and profitability will decrease. But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.Which one of the following conclusions can be logically drawn from the statements above?a)Unless the minimum wage increases, MacDowell’s will continue to remain profitable.b)If the minimum wage increases, MacDowell’s will no longer be able to remain profitable.c)MacDowell’s will see its profitability increase if the minimum wage does not increase.d)MacDowell’s will be unable to maintain its current profitability if the minimum wage increases.e)If MacDowell’s sees a reduction in its profitability, that means that the minimum wage has increased.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice GMAT tests.
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