Moon Incorporated produces and distributes the same hubcaps as Sun Incorporated. Steel procurement amounts to about 50 percent of the costs required to produce these hubcaps at both Moon Incorporated and Sun Incorporated. Moon Incorporated is looking to increase its market share at the expense of Sun Incorporated. Thus, pursuant to this end, Moon Incorporated should procure less expensive steel.
Which of the following, if true, would most weaken the argument above?
A) Because they operate in an industry in which workers are members of powerful unions, hubcap producers cannot easily reduce the wages they pay employees.
B)Less expensive steel would be of a lower quality, and this lower quality would result in lower demand for Moon hubcaps.
C)Sun Incorporated has taken a significant portion of Moon Incorporated’s market share in the last several years.
D)Moon Incorporated buys its steel at a price that is, on average, 5 percent higher than the price does Sun Incorporated.
E)Many raw material providers that source steel to manufacturers have no alternative industries to supply.
Source: Ready4GMAt