the cost of producing radios in country Q is 10 percent less : GMAT Critical Reasoning (CR)
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the cost of producing radios in country Q is 10 percent less

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the cost of producing radios in country Q is 10 percent less [#permalink]

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21 May 2010, 07:58
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the cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

The statments above,if true,best support which of the following assertions?

A) Labor costs in country Q are 10 percent below those in Country Y.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y.
[Reveal] Spoiler: OA

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the cost of producing radios in country Q is 10 percent less [#permalink]

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21 May 2010, 08:14
the cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

The statments above,if true,best support which of the following assertions?

A) Labor costs in country Q are 10 percent below those in Country Y.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y.

Guyz i have quastions about the right answer so i will wait for the answers first. Than i will discuss why i am not satisfied by the answer explanation.
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Re: CR Question...........i think there is some problem [#permalink]

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21 May 2010, 08:35
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fatihaysu wrote:
the cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

The statments above,if true,best support which of the following assertions?

A) Labor costs in country Q are 10 percent below those in Country Y. --- Not sure, it could be possible that labour cost is around 20 % lower but the transporation cost is a bit higher but over all its still chaep to get the radios from the country Q.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.-- Not neccesary, it could be possible that radios getting manufactured in country Y is only say 2 % because radios have always been imported from country Q

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y --- Correct, this is what the stem is also saying that over all cost is less, which means transporation cost + import cost is less than 10 %

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q -- Incorrect, If it would have been more than the over all cost would not have been less than 10 % difference.

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y. -- Irrelevalent

Guyz i have quastions about the right answer so i will wait for the answers first. Than i will discuss why i am not satisfied by the answer explanation.

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Re: plz check it guyz i think there is some problem [#permalink]

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21 May 2010, 09:23
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My guess is C, reasoning follows:
fatihaysu wrote:
the cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

The statments above,if true,best support which of the following assertions?

A) Labor costs in country Q are 10 percent below those in Country Y. 'Labor' is a bit out of scope. What if the radios are made entirely by machines?

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y. This wildly assumes a direct relationship between the external markets and Country Y's manufacturing industry. It also implies that all manufacturing jobs in Country Y are related to radio.

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y. This is true because it says: "Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y." If the tariff was 10 percent or more, then it would NOT be cheaper. But it is cheaper, so it must be less.

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q. This follows similar logic as above... except the 10% here is less meaningful as a benchmark because Q+10% of Q is not the same as Y -10% of Y. Either way it falls through.

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y. Time = money, but there is nothing here to suggest the tradeoff is a perfect 1:1 ratio.

Guyz i have quastions about the right answer so i will wait for the answers first. Than i will discuss why i am not satisfied by the answer explanation.
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Re: plz check it guyz i think there is some problem [#permalink]

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21 May 2010, 10:08
even I'll go with C !
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Re: plz check it guyz i think there is some problem [#permalink]

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21 May 2010, 11:58
yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?
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Re: plz check it guyz i think there is some problem [#permalink]

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21 May 2010, 12:33
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fatihaysu wrote:
yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?

It's all about the wording of the question.

The part that says: "the statement above, if true" is key. You have to assume everything it says is true, meaning that it most definitely IS cheaper to import from Q than to produce in Y, even with tariff + transport. Essentially, we DO have information about the transport fees; we know that no matter what the tariff fee is, they're never going to make it more expensive than Y.

So let's say cost of Y = 100%

We know that Q = 90% (of Y)

We know that Q + tariff + transportation < 100%

Therefore 0% <= tariff < 10% AND 0% <= transportation < 10% ... we just don't know specifically.

Answer C basically says Tariff is less than 10% of Y. True!
Answer D says Transportation is > 10% of Q... which is hard to determine not necessarily true.

Does that help?
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Re: plz check it guyz i think there is some problem [#permalink]

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21 May 2010, 12:43
fatihaysu wrote:
yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?

let me explain this through maths

cost in Q is 10% percent less than cost in Y [cost in Q = 0.9*cost in Y]
cost in Q + transport + tariff < cost in Y
transport + tariff < cost in Y - cost in Q

transport + tariff < 0.1 cost in Y [cost in Q = 0.9*cost in Y]

this must mean that C is correct
tariff < 10% of cost in Y

C it is

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Re: plz check it guyz i think there is some problem [#permalink]

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21 May 2010, 13:35
dimitri92 wrote:
fatihaysu wrote:
yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?

let me explain this through maths

cost in Q is 10% percent less than cost in Y [cost in Q = 0.9*cost in Y]
cost in Q + transport + tariff < cost in Y
transport + tariff < cost in Y - cost in Q

transport + tariff < 0.1 cost in Y [cost in Q = 0.9*cost in Y]

this must mean that C is correct
tariff < 10% of cost in Y

C it is

can you explain me what if transportain fee is way more then tariff. There is no information about transformation fee. Am i wrong?
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Re: plz check it guyz i think there is some problem [#permalink]

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21 May 2010, 13:38
dalmba wrote:
fatihaysu wrote:
yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?

It's all about the wording of the question.

The part that says: "the statement above, if true" is key. You have to assume everything it says is true, meaning that it most definitely IS cheaper to import from Q than to produce in Y, even with tariff + transport. Essentially, we DO have information about the transport fees; we know that no matter what the tariff fee is, they're never going to make it more expensive than Y.

So let's say cost of Y = 100%

We know that Q = 90% (of Y)

We know that Q + tariff + transportation < 100%

Therefore 0% <= tariff < 10% AND 0% <= transportation < 10% ... we just don't know specifically.

Answer C basically says Tariff is less than 10% of Y. True!
Answer D says Transportation is > 10% of Q... which is hard to determine not necessarily true.

Does that help?

Definietly. I am sorry i didnt read yours first then i asked same quation to the other friend. Yeah you are right. Fee + tariff cant be expensive more then producing it in country Y. even we dont know how much fee is

Thanks guyzz...
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Re: plz check it guyz i think there is some problem [#permalink]

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21 May 2010, 22:16
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fatihaysu wrote:

can you explain me what if transportain fee is way more then tariff. There is no information about transformation fee. Am i wrong?

transport + tariff < 0.1 cost in Y [cost in Q = 0.9*cost in Y]

even if the transport fee is way greater than tariff ... the sum of both has to be less than 10% of cost in Y ... and if this is the case the tariff MUST be less than 10%

you usually don't have enough time in gmat to do such problems mathematically ... it was just to explain you .... the quickest way to do the problem is to pick up premises and use them.

premise: cost in Q is 10% less than cost in Y
premise: even if we add transport and tariff, cost in Q is still less than cost in Y

if both premises are true ... transport + tariff just have a margin of 10% of cost in Y .. they cant be more than 10% of cost in Y otherwise radios will get more expensive to import

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24 May 2010, 10:24
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C should be the one.

cost of producing radio in country Y = $100 cost of producing radio in country Q (10% less) =$90

The argument says it is cheaper for Y to import radios from Q rather than producing them in-house...that means even when Y imports radios from Q it will cost less than $100. option C says....The tariff on a radio imported from Q to Y is less than 10 percent of the cost of manufacturing the radio in counrty Y.....which goes well with the argument. Current Student Affiliations: ? Joined: 20 Jul 2009 Posts: 191 Location: Africa/Europe Schools: Kellogg; Ross ($\$); Tuck
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24 May 2010, 14:48
I agree with the above explanation. C is the one.
what is OA?
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24 May 2010, 15:03
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Re: CR Question...........i think there is some problem [#permalink]

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25 Sep 2011, 09:10
fatihaysu wrote:
the cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

The statments above,if true,best support which of the following assertions?

A) Labor costs in country Q are 10 percent below those in Country Y.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y.

Guyz i have quastions about the right answer so i will wait for the answers first. Than i will discuss why i am not satisfied by the answer explanation.

1. Cost of manufacturing in Country Q is 10% less than that in country Y
2. Even after import from country Q to country Y, the manufacturing price is still less than that in county Y.
It means that import duties are less than 10% of the cost of manufacturing.
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Re: the cost of producing radios in country Q is 10 percent less [#permalink]

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30 Sep 2012, 01:39
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Question Stem

The statements above,if true,best support which of the following assertions?

Inference Question. So Answer MUST BE TRUE.

Argument

The cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y. Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

Pre-thinking
Transportation Fees and Tariff charges are less than 10 percent of he cost of producing radios in Country Y.

A) Labor costs in country Q are 10 percent below those in Country Y.
INCORRECT ANSWER - The argument says that cost of producing radios in Country Q is 10 percent less. We have no information of what consists of this cost. Labor costs may be one of the components. So this option may not be true.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.
INCORRECT ANSWER - Elimination of jobs is Outside the Scope of the argument. This argument only focuses on the cost of production

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in country Y
CORRECT ANSWER - Refer to this second sentence - "Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y". So if the Q is 10 percent cheaper and some additional charges are required and still Q is cheaper than Y, means that tariff (and transportation fees, individually or together) is less than 10 percent of the cost of manufacturing the radio in country Y

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q
INCORRECT ANSWER - This cannot be true. It is opposite of what can be inferred from the argument.

E) It takes 10 percent less time to manufacture a radio in country Q than it does in Country Y.
INCORRECT ANSWER - Time to manufacture is outside the scope of the argument.
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Re: the cost of producing radios in country Q is 10 percent less [#permalink]

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03 Oct 2012, 02:14
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Though many expert advise us not to prethink an inference before going to answer choices, other expert advise us to do so.
I myself see that prethinking an inference before going to answer choices is effective not only for quantitative based inference questions but also for other kinds of inference questions because prethinking helps us better understand and absorb the argument, analysing answer choices better. non natives normally can not absorb well what they read and this is the reason why prethink help us tremendously. And, I think that prethinking is the only method to test that we understand the argument well. Of course, we will not prethink an inference exhaustively. In many questions, we just try to prethink. But just doing so helps us a lot.

in some cases, prethinking an inference bring us the inference which is exactly the correct answer. great in this case.

I want the experts to discuss more on this point. Thank you.
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Re: the cost of producing radios in country Q is 10 percent less [#permalink]

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24 May 2013, 06:04
C it is..
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Re: the cost of producing radios in country Q is 10 percent less [#permalink]

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Re: the cost of producing radios in country Q is 10 percent less [#permalink]

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17 Jul 2016, 03:49
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: the cost of producing radios in country Q is 10 percent less   [#permalink] 17 Jul 2016, 03:49
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