GMAT Exam Dumps : Graduate Management Admission Test (2022)

Manufacturers and retailers tend to look askance at gray markets, where products are sold at cut-rate prices outside their authorized distribution channels. Manufacturers fear that gray markets will undercut margins and tarnish brand names. Retailers fear that they will siphon away customers and erode prices.

A new study indicates, however, that gray marketing actually benefits manufacturers and retailers in markets that meet two criteria: first, sharp differences exist in consumers' price sensitivity; second, large numbers of consumers are price-insensitive. In such markets, the low prices of the gray market will attract the most price-sensitive customers. The authorized channels will then compete only for the remaining customers—those who are insensitive to price but sensitive to service.

When that happens, the structure of competition and the economics of the market shift. The authorized retailers, freed from having to cater to the bargain hunters, can raise their prices and focus on service. If the concentration of price-insensitive shoppers is high enough, the resulting increase in prices will more than offset the loss of sales to the bargain hunters. The margins and profits of the authorized retailers will increase, and manufacturers will, as a result, be able to boost their wholesale prices.

Previously unknown extrasolar planets-planets outside our solar system— probably await discovery In archival images taken by the Hubble Space Telescope. A new technique allows astronomers to model the amount and distribution of scattered light produced by young stars suspected of spawning planets and remove that light from images of those stars. Once the glare of the parent stars' light is removed, planets may show up In Images already taken by Hubble's infrared cameras, since heat emitted by planets produces telltale wavelengths of infrared light.

In 2008, astronomers using powerful Earth-based telescopes were able to detect three planets orbiting the star HR 8799 that were not previously detected by astronomers who examined infrared Hubble images of the star in 1998. David Lafrentere—a member of the team of astronomers who detected the planets in 2006 —then applied the new technique to those Hubble images and managed to uncover the outermost of the three planets. The others, tying closer to the star, still could not be distinguished against the background of the star's light.

Lafrenifre's work has helped reaffirm the importance of maintaining long-term archives, and—because Hubble's infrared cameras record some wavelengths of light that cannot penetrate through the atmosphere to reach Earth's surface-revealed new information about the outermost of HR 8799's planets.