Passage Summary: Tony argues that cheap, short-lived tapes are a better deal for stores. Anna counters that the cost of the tape is tiny compared to the royalties paid per copy, so buying more tapes to replace the short-lived ones will actually cost more in royalties.

Conclusion: Video rental stores would find it significantly more economical to purchase and stock movies recorded on the new kind of videocassette.

Reasoning: The new tapes cost only one-third as much as the old ones, even though they only last half as long.

Analysis: To strengthen Tony's position against Anna's critique, we need to find a way to make the royalty issue disappear. Anna's argument hinges on the idea that stores pay a royalty for every single physical copy they buy. If we can show that royalties are paid differently—perhaps a flat fee per movie title regardless of how many tapes the store owns—then Tony's original 'cheap tape' plan becomes viable again. Look for an answer choice that breaks the link between the number of tapes purchased and the total amount of royalties paid.