Ramirez: The Film Industry Claims That Pirated DVDs, Which Are Usually Cheaper GMAT Critical Reasoning

Question: Ramirez: The film industry claims that pirated DVDs, which are usually cheaper than legitimate DVDs and become available well before a film's official DVD release date, adversely affect its bottom line. But the industry should note what the spread of piracy indicates: consumers want lower prices and faster DVD releases. Lowering prices of DVDs and releasing them sooner would mitigate piracy's negative effect on film industry profits.

The argument above relies on which of the following assumptions?

1. Releasing legitimate DVDs earlier would not cause any reduction in the revenue the film industry receives from the films' theatrical release.
2. Some people who would otherwise purchase pirated DVDs would be willing to purchase legitimate DVDs if they were less expensive and released earlier than they are now.
3. The film industry will in the future be able to produce DVDs more cheaply than is currently the case.
4. Some current sellers of pirated DVDs would likely discontinue their businesses if legitimate DVDs were released faster and priced lower.
5. Current purchasers of pirated DVDs are aware that those DVDs are not authorized by the film industry.

Explanation

“Ramirez: The film industry claims that pirated DVDs, which are usually cheaper”- is a question of critical reasoning in a section of GMAT Verbal Reasoning. It examines the logical reasoning of the candidate in the test. The Critical Reasoning question type is used to measure critical business skills. GMAT Critical Reasoning questions assess a distinct set of qualities associated with logic. The students preparing for the GMAT will experience the argument analysis of Critical Reasoning for the first time to substantiate their logic.

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