Exam LSAT Section 1 Logical Reasoning topic 1 question 163 discussion

Actual exam question from Test Prep's LSAT Section 1 Logical Reasoning

Question #: 163
Topic #: 1

[All LSAT Section 1 Logical Reasoning Questions]

Tony: A new kind of videocassette has just been developed. It lasts for only half as many vie wings as the old kind does but costs a third as much. Therefore, video rental stores would find it significantly more economical to purchase and stock movies recorded on the new kind of videocassette than on the old kind.
Anna: But the videocassette itself only accounts for 5 percent of the price a video rental store pays to buy a copy of a movie on video; most of the price consists of royalties the store pays to the studio that produced the movie. So the price that video rental stores pay per copy would decrease by considerably less than 5 percent, and royalties would have to be paid on additional copies.
Anna's reply is structured to lead to which one of the following conclusions?

A. The royalties paid to movie studios for movies sold on videotape are excessively large.
B. Video rental stores should always stock the highest-quality videocassettes available, because durability is more important than price.
C. The largest part of the fee a customer pays to rent a movie from a video rental store goes toward the royalties the store paid in purchasing that movie.
D. The cost savings to video rental stores that buy movies recorded on the cheaper videocassettes rather than movies recorded on the more durable ones will be small or nonexistent.
E. If the price a video rental store pays to buy a movie on videocassette does not decrease, the rental fee the store charges on the movie will not decrease.

Show Suggested Answer

Suggested Answer: D 🗳️
Our next confrontation features Tony vs. Anna in a video debate. Tony asserts that video stores would make out economically if they bought and stocked movies recorded on the new kind of videocassette. The decreased lifespan of the new tapes, Tony reasons, is outweighed by their cheaper cost. Annas reply, which is the focus of Q. 23, begins with the Contrast Keyword "But," so no doubt she takes exception to Tony’s advice for the video stores. She points out that the cost of the videocassette is only a small fraction of the overall cost of buying a videotaped movie, the bulk of the expense residing in the royalty fee. Each time a tape wears out (and these new-fangled ones wear out faster than the older ones), a store incurs another royalty fee. Its not hard to see where Anna is going with this:
The overall cost savings Tony touts will be very minimal, if they exist at all, because the area in which Tonys savings accrue represents only a tiny fraction of the overall cost. Thats D.

by [deleted] at March 9, 2025, 1:30 p.m.

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