Quicklearn and Smartstudy are two leading schools at Glendale. Their faculty salaries account for thirty percent of the student fee earned. In an attempt to increase enrolments and reduce costing, Quicklearn is considering lowering the school fee (to attract more students) as well as faculty salaries (to rationalize costing).

Which of the following, if true, would make the above proposal counterproductive?

Quicklearn and Smartstudy are located within easy reach of each other.

Last year Smartstudy had a greater number of enrolments than Quicklearn without lowering the fee.

A reduction in faculty salary would reduce the quality of faculty and this would ultimately lead to lowering of standard of education.

Salaries at Quicklearn already are, on an average, 15% lower than those at Smartstudy.

Both schools are recipients of alumni contributions.