A national government plans to purchase a new earthquake warning system with revolutionary digital technology and features such as alarms, color-coded battery alerts, and an acoustic, SOS signal. One aspect of the plan is that, in exchange for government research funding, security companies wanting to market this system to corporations must provide these additional features at no extra cost to buyers.
Which of the following, if true, would point to a possible flaw in the government’s plan?
A. Security companies will set their own prices for the system and can raise the system’s price to the government of what they would have charged for the system and the features combined.
B. Some security companies sell additional features that supplement earthquake warning systems but do not sell the systems themselves.
C. When an earthquake is expected to occur, a national government does much more to ensure public safety than does any corporation.
D. Some security companies already offer additional features at no extra cost to purchasers of earthquake warning systems.
E. Market research suggests that corporations likely to purchase earthquake warning systems would purchase the additional features, as well.