GWD-12-Q22:

Denoma, a major consumer-electronics maker, had a sizeable decline in sales revenue for its most recent fiscal year.  This result appears surprising, because electronics retailers report that although their overall sales were considerably lower than in the previous year, their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.

Which of the following, if true, does most to explain the apparently surprising result?

A.     Because of the need to educate the public about its new models’ capabilities, Denoma’s advertising spending was higher than normal over the period.

B.      For the period at issue, Denoma’s major competitors reported declines in revenue that were, in percentage terms, greater than Denoma’s.

C.     A significant proportion of Denoma’s revenue comes from making components for other consumer-electronics manufacturers.

D.     Unlike some of its major competitors, Denoma has no lines of business outside consumer electronics to provide revenue when retail sales of consumer electronics are weak.

E.      During the period, consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices that were deeply discounted from those models’ original prices.

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答案是C，我觉得是E。

E：因为retailers卖那些低价从Denoma公司买来的库存货，所以能够影响D公司的销售，从而导致利润下降。这可以解释为什么D公司声称利润下降但是retailers却说利润增加了。

大家觉得呢？

在这种渠道过程中，会出现两个价格P1和P2，P1是manufacturer和retailer的价格，P2是retailer和consumer之间的价格，retailer成功，manufacturer失败，价格可能会是原因。对于paradox这类题，答案必须要同时解释为什么A好，为什么B不好。

我对E的理解和MM有些不一样

consumer-electronics retailers sold remaining units of Denoma’s superseded models at prices（ that were deeply discounted from those models’ original prices.）说的是retailer用较低的折扣把那些旧模型存货(文中提到introduce new models）卖了出去。题目已经说了 their sales revenue from Denoma models actually grew, largely thanks to some innovative and popular models that Denoma introduced.新模型才是销售收入增长的原因，旧模型怎么卖，是无关的。这里的PRICE是P2，和P1无关，是无法解释为什么Denoma不好的。

C，首先肯定了Denoma models销售是好的（为什么retailer好），然后，虽然Denoma也从Denoma models获益了，但是因为这不是它的主营业务，所以它的不好是因为其他业务造成的。

谢谢。

但是C缺少一个前提——那些D公司为其make component的consumer-electronics manufacturers的利润下降——吧？

although their overall sales were considerably lower than in the previous year这句话就是暗示撒，其他的consumer-electronics销售量都下降~

注意哦，这里是销售收入，不是利润。利润要减去成本，成本这里没有讨论。