Question

Getchecked Inc. is a leading medical devices manufacturer. A cosmetic​ surgeon, Dr. Matt Breen is discussing the prices of​ Getchecked's medical devices with his​ colleague, Dr. Ed Walter. Matt​ says, Getchecked probably finds it difficult to make profits. The medical device market is highly​ crowded." Ed​ replies, Well, they do have quite a few patented products so the profits must be flowing​ in." Meanwhile James​ Radford, a medical​ technician, agrees that Getchecked must be doing well. Given that​ Getchecked's products are widely used in the​ market, even an increase in prices would not affect sales or profits according to James.
Which of the​ following, if​ true, would weaken​ Matt's argument that​ Getchecked's profits are most likely negligible due to​ competition?
A.Lifestyle-related diseases like diabetes and hypertension are on the rise in this country.
B.Getchecked recently hiked the​ per-unit commission paid to its salesmen.
C.Product differentiation in terms of quality is common in this market because the buyers are very​ quality-conscious.
D.Some firms in the market have started manufacturing medical devices that can be directly used by the final consumer.
E.Doctors choose the brand of medical devices that should be used in the hospital.

Answer 1

Answer:

A) Lifestyle-related diseases like diabetes and hypertension are on the rise in this country.

Explanation:

A rise in lifestyle-related, chronic diseases like diabetes and hypertension would continue to increase the amount of potential customers for Getchecked Inc, even if the market competition is high. Supply of medical devices is considerable, but demand is also likely to rise. The market share for Getchecked Inc is in the making.