hard · GMAT Verbal

Company Alpha's market share in the logistics sector decreased from 25% to 20%, yet its total annual revenue increased by 15%.

Which of the following, if true, best explains this apparent discrepancy?

  1. The company's primary competitor went bankrupt and exited the market.
  2. Company Alpha's customer satisfaction scores improved over the same period.
  3. The company reduced its operating costs by 10% to improve profit margins.
  4. Company Alpha increased the price of its premium services by 5%.
  5. The total market for logistics services grew so much that a smaller share still represented more absolute revenue.

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