To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.
The company’s argument depends on which of the following assumptions?
(A) Without the proposed hub, most shipments would bypass the remote region entirely.
Even if without the proposed hub, most shipments would not bypass the remote region entirely, and some of them are delivered locally, the bonus is not greatly impacted with the introduction of business hub.
Incorrect
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
If federal government does not award bonuses based on total shipment volume passing through a region, not just on shipments delivered locally, then the claim of shipment company on the bonus based on the total volume of goods delivered to businesses within their region becomes null and void.
Correct
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
The bonus is awarded to encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. It has no relation with benefitting local businesses.
Incorrect
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
The argument is not concerned with delivery times. Irrelevant
Incorrect
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.
The argument is concerned with total volume of goods delivered to businesses in remote regions and not with proportion of shipping company’s national shipments.
Incorrect
IMO B