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me also E
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Negate E and the argument falls apart...E it is.
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Clearly E.
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but the OA is B, could someone explain to me why?
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jet1445
but the OA is B, could someone explain to me why?


B is the correct answer.

E simply states that the seven companies do not currently manufacture the product as per the guidelines that would be laid down by the government.

If you read the question carefully:
" In this case, therefore, since none of the seven small companies can afford to convert their production lines to a new set of manufacturing specifications, only the three large companies will be able to remain in business. "

B correctly addresses the cost factor
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buzzgaurav
jet1445
but the OA is B, could someone explain to me why?

B is the correct answer.

E simply states that the seven companies do not currently manufacture the product as per the guidelines that would be laid down by the government.

If you read the question carefully:
" In this case, therefore, since none of the seven small companies can afford to convert their production lines to a new set of manufacturing specifications, only the three large companies will be able to remain in business. "

B correctly addresses the cost factor


I think E does address the cost factor.

If E wasn't true, there there's no extra cost involved for the smaller companies, so it would not be true that only the three large companies will be able to remain in business.
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Fact:
- Three large companies and seven small companies currently manufacture a product with potential military applications
- If the government regulates the industry, it will institute a single set of manufacturing specifications to which all ten companies will have to adhere
Conclusion:
- Since none of the seven small companies can afford to convert their production lines to a new set of manufacturing specifications, only the three large companies will be able to remain in business

Now let's look at the options
A - Eliminate - Is an assumption but that does not endorse the conclusion.
B - Correct - Is an assumption which endorses the conclusion.
C - Eliminate - No evidence in the question.
D - Eliminate - No evidence in the question.
E - Eliminate - No evidence in the question.

Hence B is the answer.



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