QUESTION TYPE: Paradox
PARADOX: The gross revenues of big budget movies are 2-3 times higher than their production or marketing costs. Yet most revenue comes from small budget movies.
ANALYSIS: How many big budget movies are there vs. small movies? This could be the long tail in action.
That was my first thought, and it turns out to be the correct answer, B.
Also, the fact that movies gross 2-3 their cost is not impressive unless we know what the comparable figure for smaller movies is.
___________
- Of course they do, they have higher production costs. So what?
- CORRECT. This would do it. Many small movies added together can gross more than a few big movies.
- So? This tells us nothing about the relationship of big and small movies.
- This is relevant to profits, but not to revenues, which don’t take costs into account.
- As in D, we’re concerned with revenues, not costs/profits.
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