Argument:
Boldface 1: "Walmart has recently begun transitioning from its traditional warehouse-based retail model to an online-first model."
Boldface 2: "This is quite likely, since expenses such as warehouse rentals and in-store salaries have historically contributed significantly to Walmart’s fixed costs."
Structure of the Argument:
Background/context: Walmart is shifting from physical to online-first.
Question/issue raised: Will this lead to a reduction in fixed costs?
Claim/prediction: Yes, it's likely.
Support: Because expenses like warehouse rentals and in-store salaries (associated with the old model) made up a large part of fixed costs.
Roles of Boldfaced Parts:
Boldface 1 provides context or background for the argument—it sets up the situation being discussed.
Boldface 2 is used as evidence supporting the claim that fixed costs will likely decrease.
Evaluate the Answer Choices:
A. The first introduces the context for the argument; the second is the central claim the argument attempts to justify.
Incorrect. The second boldface is not the central claim; it supports the claim that fixed costs will likely decrease.
B. The first presents an issue that the argument seeks to evaluate; the second provides evidence in support of a prediction made in the argument.
Incorrect. The first doesn't present an issue—it provides context (a change in business model). The issue is posed in the next sentence (about fixed costs).
C. Both the first and the second provide evidence in support of the main claim.
Incorrect. The first is not evidence, just background/context.
D. The first establishes the context for the argument's evaluation; the second identifies the subject of that prediction.
Incorrect. The second doesn’t just identify the subject of the prediction—it supports the prediction (by listing reasons fixed costs might decrease).
E. The first identifies the subject of the main conclusion; the second provides evidence supporting that conclusion.
Correct.The subject of the main conclusion is Walmart and its cost structure as it transitions to an online-first model.
The second boldface provides evidence: it lists expenses that could be reduced under the new model.
Final Answer: E