Statement of a United States copper mining company: Import : GMAT Critical Reasoning (CR)
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# Statement of a United States copper mining company: Import

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Director
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Statement of a United States copper mining company: Import [#permalink]

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07 May 2008, 09:58
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Statement of a United States copper mining company: Import quotas should be imposed on the less expensive copper mined outside the country to maintain the price of copper in this country; otherwise, our companies will not be able to stay in business.
Response of a United States copper wire manufacturer: United States wire and cable manufacturers purchase about 70 percent of the copper mined in the United States. If the copper prices we pay are not at the international level, our sales will drop, and then the demand for United States copper will go down.

If the factual information presented by both companies is accurate, the best assessment of the logical relationship between the two arguments is that the wire manufacturers argument

(A) is self-serving and irrelevant to the proposal of the mining company
(B) is circular, presupposing what it seeks to prove about the proposal of the mining company
(C) shows that the proposal of the mining company would have a negative effect on the mining companys own business
(D) fails to give a reason why the proposal of the mining company should not be put into effect to alleviate the concern of the mining company for staying in business
(E) establishes that even the mining companys business will prosper if the mining companys proposal is rejected
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Re: CR - copper mining [#permalink]

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07 May 2008, 10:45
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Straight C.
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Re: CR - copper mining [#permalink]

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07 May 2008, 10:48
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I go with C on this one.

Statement of a United States copper mining company: Import quotas should be imposed on the less expensive copper mined outside the country to maintain the price of copper in this country; otherwise, our companies will not be able to stay in business.

The mining companies wants to restrict the amount less expensive copper mined outside the U.S. so that they can keep their prices high and stay in business.

Response of a United States copper wire manufacturer: United States wire and cable manufacturers purchase about 70 percent of the copper mined in the United States. If the copper prices we pay are not at the international level, our sales will drop, and then the demand for United States copper will go down.

The manufacturers are saying that if the U.S. prices are not the same as the cheaper international prices then copper demand will go down. In other words if the U.S. manfactures put their plan in place and keep U.S. prices high, then demand drops.

(C) shows that the proposal of the mining company would have a negative effect on the mining companys own business
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Re: CR - copper mining [#permalink]

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07 May 2008, 10:49
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No doubt C .
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Re: CR - copper mining [#permalink]

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07 May 2008, 18:48
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Although i agree with 'C'. Can anyone please explain me why "E" is wrong?
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Re: CR - copper mining [#permalink]

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07 May 2008, 20:55
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C
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Re: CR - copper mining [#permalink]

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07 May 2008, 20:56
mbamogul wrote:
Although i agree with 'C'. Can anyone please explain me why "E" is wrong?

It directly stated that if the proposal is accepted, the demand for copper will go down. However, it did not directly state that if the proposal is rejected, that demand will go up. You can not make this assumption.
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Re: CR - copper mining [#permalink]

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08 May 2008, 05:37
OA:C Thanks
Re: CR - copper mining   [#permalink] 08 May 2008, 05:37
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