Newspaper publishers earn their profits primarily from advertising revenue, and potential advertisers are more likely to advertise in newspapers with a wide circulation—a large number of subscribers and other readers—than with other newspapers. But the circulation of the newspaper that is currently the most profitable one in this city has steadily declined during the last two years, while the circulation of one of its competitors has steadily increased. Any of the following, if true, would help explain the apparent discrepancy between the two statements above EXCEPT:

general knowledge

  1. Advertisers generally switch from the most widely ...........circulated newspaper to another one only when the ...........other one becomes the most widely circulated ...........newspaper instead.

  2. Advertising rates charged by the most profitable ...........newspaper in the city are significantly higher than ...........those charged by its competitors.

  3. The most profitable newspaper in the city receives ...........revenue from its subscribers as well from advertisers.

  4. The circulation of the most profitable newspaper ...........in the city is still greater than than of any of its ...........competitors.

  5. The number of newspapers competing viably with the ...........most profitable newspaper in the city has increased ...........during the last two years.

Show answer
Correct Option: E

AI Explanation

To answer this question, let's go through each option to understand why it is correct or incorrect:

Option A) Advertisers generally switch from the most widely circulated newspaper to another one only when the other one becomes the most widely circulated newspaper instead.

  • This option explains that advertisers switch from one newspaper to another when the other newspaper becomes the most widely circulated one. This could explain the decline in circulation of the currently most profitable newspaper if its competitor has recently become the most widely circulated one. Therefore, this option is a possible explanation for the discrepancy.

Option B) Advertising rates charged by the most profitable newspaper in the city are significantly higher than those charged by its competitors.

  • This option suggests that the most profitable newspaper charges significantly higher advertising rates than its competitors. This could explain why advertisers prefer to advertise in this newspaper despite its declining circulation. Therefore, this option is a possible explanation for the discrepancy.

Option C) The most profitable newspaper in the city receives revenue from its subscribers as well from advertisers.

  • This option states that the most profitable newspaper generates revenue from both subscribers and advertisers. This supports the idea that advertising revenue is a primary source of profit for newspaper publishers. Therefore, this option is a possible explanation for the discrepancy.

Option D) The circulation of the most profitable newspaper in the city is still greater than that of any of its competitors.

  • This option suggests that the most profitable newspaper still has a greater circulation than any of its competitors, even though its circulation has declined. This supports the idea that the newspaper's circulation is still relatively high, which could explain its profitability. Therefore, this option is a possible explanation for the discrepancy.

Option E) The number of newspapers competing viably with the most profitable newspaper in the city has increased during the last two years.

  • This option states that the number of newspapers competing viably with the most profitable newspaper has increased during the last two years. This suggests that there are now more options for advertisers to choose from, which could explain why the circulation of the currently most profitable newspaper has declined while that of its competitor has increased. Therefore, this option is NOT an explanation for the discrepancy.

The correct answer is E. This option does not help explain the apparent discrepancy between the two statements, as it suggests a possible reason for the decline in circulation of the currently most profitable newspaper.

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