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 single largest and most aggressive direct competitor abruptly went bankrupt and then exited the market entirely.
  2. Company Alpha's independently measured customer satisfaction scores improved steadily over this same reporting period.
  3. The company deliberately cut its total operating costs by roughly 10% to improve its overall profit margins.
  4. Company Alpha modestly raised the listed retail price of its premium delivery services by about 5% this year.
  5. The total market for logistics services grew so much that a smaller share still represented more absolute revenue.

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