Free Practice Question
CR · Critical Reasoning
505-555
Strengthen
Coffee shop owner: A large number of customers will pay at least the fair market value for a cup of coffee, even if there is no formal charge. Some will pay more than this out of appreciation of the trust that is placed in them. And our total number of customers is likely to increase. We could therefore improve our net cash flow by implementing an honor system in which customers pay what they wish for coffee by depositing money in a can.
Manager: We're likely to lose money on this plan. Many customers would cheat the system, paying a very small sum or nothing at all.
Which of the following, if true, would best support the owner’s plan, in light of the manager’s concern?
Manager: We're likely to lose money on this plan. Many customers would cheat the system, paying a very small sum or nothing at all.
Which of the following, if true, would best support the owner’s plan, in light of the manager’s concern?
Answer Choices
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The new system if implemented, would increase the number of customers.
B
By roasting its own coffee, the shop has managed to reduce the difficulties and cost of maintaining an inventory of freshly roasted coffee.
C
Many customers stay in the cafe for long stretches of time.
D
The shop makes a substantial profit from pastries and other food bought by the coffee drinkers.
E
No other coffee shop in the area has such a system.
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Difficulty
505-555
Type
CR