There is relatively little room for growth in the
overall carpet market, which is tied to the size of the
population. Most who purchase carpet do so only
once or twice, first in their twenties or thirties, and
then perhaps again in their fifties or sixties. Thus as
the population ages, companies producing carpet
will be able to gain market share in the carpet market
only through purchasing competitors, and not
through more aggressive marketing.
Which one of the following, if true, casts the most
doubt on the conclusion above?
(A) Most of the major carpet producers market
other floor coverings as well.
(B) Most established carpet producers market
several different brand names and varieties,
and there is no remaining niche in the
market for new brands to fill.
(C) Two of the three mergers in the industry’s last
ten years led to a decline in profits and
revenues for the newly merged companies.
(D) Price reductions, achieved by cost-cutting in
production, by some of the dominant firms
in the carpet market are causing other
producers to leave the market altogether.
(E) The carpet market is unlike most markets in
that consumers are becoming increasingly
resistant to new patterns and styles.