Almost the entire demand for milk products in Hamilton County is supplied by Mother Dairy, a large establishment that has been around for fifty years, through distribution centers. However, in the past six months, four of Mother Dairy distribution centers have closed down, and no new ones have opened up. It is clear that Mother Dairy’s sales volumes and revenues this year will be less compared to those last year.
The argument depends on which of the following assumption?
A Mother Dairys sales volumes and revenues were much higher last year compared to the year before.
B Mother Dairys operating expenses have not seen a reduction from last year to this year.
C The distribution centers that have remained open have sold less volumes of milk this year than they did last year.
D Very soon, Mother Dairy will no longer be able to monopolize the milk market in Hamilton County.
E Mother Dairy is not one of the businesses that get most of their business from customers outside Hamilton County.
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A,B,D is easy to eliminated. let's focus on C and E.
C is only have way correct. imagine what if the price of the milk go up significantly. will the conclusion " volumes and revenues this year will be less" still hold? For example, last year, it sold 10 units and with $10 per unit. because of the closure, the market price went up to $100 per unit. even though, it sold only 4 units this year, the total revenue is still higher than last year. 4*$100 = $400 vs 10*$10=$100
E is better. If most of their businesses are from outside of the county, it would surely not impact its business. Hence, it weakens the conclusion. But since it said "not" most of the businesses are from outside the county, meaning most of the customers are coming from Hamilton County. The dist centers closure would surely impact the revenue.