mdcat logical reasoning MCQ #162

A company's profits decline after a new competitor enters the market. What is the most likely cause of this decline?

mdcat logical reasoning MCQ #162

  1. Question 1

    Q1. A company's profits decline after a new competitor enters the market. What is the most likely cause of this decline?

    • A) Increased marketing expenses
    • B) Loss of key employees
    • C) Competition from the new entrant
    • D) Economic downturn

    Answer: Competition from the new entrant

    Explanation: New competition directly affects market share and profits. Economic downturn is a broader factor that could also affect profits but is not as directly linked.