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#5 - A newly developed light bulb is much more

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Complete Question Explanation

StrengthenX. The correct answer choice is (D)

This stimulus presents an apparent paradox. If the new light bulb costs three times the price of a conventional light bulb but its lifespan is ten times as long, then it might seem that the new bulb has a much greater lifespan-per-dollar-spent. (A mathematical demonstration: Say the old bulb costs $1 and lasts for 1000 hours. Say the new bulb costs $3 and lasts for 10,000 hours. The old bulb gives you 1000 hours per dollar spent; the new bulb gives you 3333 hours per dollar spent.)

Despite the apparent advantage, why would the new bulbs perform poorly in the market? Look carefully at the wording of the question stem. Four of these choices will resolve the paradox, but one choice will not.

Answer choice (A): The new light bulb generates unappealing light. This explains why the new light bulb might be unsuccessful with customers. This answer choice does resolve the paradox, so it cannot be the correct answer choice.

Answer choice (B): This answer choice explains exactly why people might prefer the old, inexpensive bulb over the new, durable, but expensive bulb. This answer choice does resolve the paradox, so it cannot be the correct answer choice.

Answer choice (C): If the new light bulb runs up more electricity cost than the old bulb (or at least if competitors are advertising this claim and customers believe it) then this might erase the new bulb's advantage in lifespan-per-dollar-spent. This answer choice does resolve the paradox, so it cannot be the correct answer choice.

Answer choice (D): This is the correct answer choice. The type of packaging of the bulb has little apparent connection to the market success of the bulb; we are told nothing about packaging or quantities in the stimulus. This answer choice does not resolve the paradox, so this is the correct answer choice.

Answer choice (E): If a competitor is going to introduce a "super bulb" with an absolute advantage in cost and lifespan, this would trump the second bulb's advantage in lifespan. The second bulb will lose in the market to the third bulb. This answer choice does resolve the paradox, so it cannot be the correct answer choice.