livelyangel wrote:
I want to ask about answer E
E.Production costs for the magazine are expected to remain stable.
The question says that: magazine's profits are likely to decline if the plan is instituted
Profits = revenue - cost
To reduce profits, we need to reduce revenue or/and increase or keep costs the same.
So E potentially reduces the profits
Why is E not an answer?
IMHO, the problem here is that you're assuming that revenue is reduced while it is not mentioned in the stimulus. And reduction in revenue
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