The cost of producing radios in country Q is 10 percent less than the

yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?

It's all about the wording of the question.

The part that says: "the statement above, if true" is key. You have to assume everything it says is true, meaning that it most definitely IS cheaper to import from Q than to produce in Y, even with tariff + transport. Essentially, we DO have information about the transport fees; we know that no matter what the tariff fee is, they're never going to make it more expensive than Y.

So let's say cost of Y = 100%

We know that Q = 90% (of Y)

We know that Q + tariff + transportation < 100%

Therefore 0% <= tariff < 10% AND 0% <= transportation < 10% ... we just don't know specifically.

Answer C basically says Tariff is less than 10% of Y. True!
Answer D says Transportation is > 10% of Q... which is hard to determine not necessarily true.

Does that help?

let me explain this through maths

cost in Q is 10% percent less than cost in Y [cost in Q = 0.9*cost in Y]
cost in Q + transport + tariff < cost in Y
transport + tariff < cost in Y - cost in Q

transport + tariff < 0.1 cost in Y [cost in Q = 0.9*cost in Y]

this must mean that C is correct
tariff < 10% of cost in Y

C it is

can you explain me what if transportain fee is way more then tariff. There is no information about transformation fee. Am i wrong?

transport + tariff < 0.1 cost in Y [cost in Q = 0.9*cost in Y]

even if the transport fee is way greater than tariff ... the sum of both has to be less than 10% of cost in Y ... and if this is the case the tariff MUST be less than 10%

you usually don't have enough time in gmat to do such problems mathematically ... it was just to explain you .... the quickest way to do the problem is to pick up premises and use them.

premise: cost in Q is 10% less than cost in Y
premise: even if we add transport and tariff, cost in Q is still less than cost in Y

if both premises are true ... transport + tariff just have a margin of 10% of cost in Y .. they cant be more than 10% of cost in Y otherwise radios will get more expensive to import

HTH

don't forget to press KUDOS if you like the explanation

C should be the one.

cost of producing radio in country Y = $100
cost of producing radio in country Q (10% less) = $90

The argument says it is cheaper for Y to import radios from Q rather than producing them in-house...that means even when Y imports radios from Q it will cost less than $100.

option C says....The tariff on a radio imported from Q to Y is less than 10 percent of the cost of manufacturing the radio in counrty Y.....which goes well with the argument.

1. Cost of manufacturing in Country Q is 10% less than that in country Y
2. Even after import from country Q to country Y, the manufacturing price is still less than that in county Y.
It means that import duties are less than 10% of the cost of manufacturing.
Hence answer should be (C)

Question Stem

The statements above,if true,best support which of the following assertions?

Inference Question. So Answer MUST BE TRUE.

Argument

The cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y. Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

Pre-thinking
Transportation Fees and Tariff charges are less than 10 percent of he cost of producing radios in Country Y.

Answer Choices

A) Labor costs in country Q are 10 percent below those in Country Y.
INCORRECT ANSWER - The argument says that cost of producing radios in Country Q is 10 percent less. We have no information of what consists of this cost. Labor costs may be one of the components. So this option may not be true.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.
INCORRECT ANSWER - Elimination of jobs is Outside the Scope of the argument. This argument only focuses on the cost of production

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in country Y
CORRECT ANSWER - Refer to this second sentence - "Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y". So if the Q is 10 percent cheaper and some additional charges are required and still Q is cheaper than Y, means that tariff (and transportation fees, individually or together) is less than 10 percent of the cost of manufacturing the radio in country Y

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q
INCORRECT ANSWER - This cannot be true. It is opposite of what can be inferred from the argument.

E) It takes 10 percent less time to manufacture a radio in country Q than it does in Country Y.
INCORRECT ANSWER - Time to manufacture is outside the scope of the argument.

Though many expert advise us not to prethink an inference before going to answer choices, other expert advise us to do so.
I myself see that prethinking an inference before going to answer choices is effective not only for quantitative based inference questions but also for other kinds of inference questions because prethinking helps us better understand and absorb the argument, analysing answer choices better. non natives normally can not absorb well what they read and this is the reason why prethink help us tremendously. And, I think that prethinking is the only method to test that we understand the argument well. Of course, we will not prethink an inference exhaustively. In many questions, we just try to prethink. But just doing so helps us a lot.

in some cases, prethinking an inference bring us the inference which is exactly the correct answer. great in this case.

I want the experts to discuss more on this point. Thank you.

he cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

This is a classic case of rigorous POE.

The statments above,if true,best support which of the following assertions?

A) Labor costs in country Q are 10 percent below those in Country Y.
Maybe the raw material costs are 10% low.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.
Maybe it won't.

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y
After rigorous POE and removing all out of scope statements, i reached to this part.

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q
We arenot sure about the transporting fees.

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y.
We do not know about the time.

Answer choice A, B, and E are totally out of scope.

D is opposite.

Choice C is a paraphrased from the passage.

Hence (C)

In this question it is given that, the cost of Rq is 10% less than Ry. and including transport and fare it is still less than Ry.

A. Nothing about the labor costs is given in the statement.
B. Manufacturing jobs is also irrelevant.
C. This option says tariffs and transports are less than 10% cost of manufacturing , only then it is possible that the price will be less, CORRECT
D. If fee of transport is 10% more, then actually the price may increase or less or equal, nothing can be said.
E Time of manufacturing is irrelevant

This one is a really old question. But, I think it is still relevant, so I’ll add my view here.

Different courses/ tutors might have different strategies they recommend you follow for CR questions. E.g., some might ask you to “prethink”, some might not. End of the day, Critical Reasoning is about understanding things precisely and then applying logical thinking. So, if you find a particular step helps you get better clarity, by all means, continue doing it.

1. If you find ‘prethinking’ helps you understand the argument better, why shouldn’t you continue?
2. Keep in mind, many inference questions will not be based on arguments. You can evaluate whether you see a value add in such cases too.
3. Do not get biased toward your prediction. I.e., do not end up rejecting answers because they do not match with your prediction. Or, do not get overly attracted to an option just ‘cause it is similar to what you thought initially.

The cost of producing radios in Country Q is 10 percent less than the cost of producing radios in Country Y. – Producing radios is cheaper in Q than in Y – by 10%.

Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from Country Q to Country Y than to produce radios in Country Y. – Even after adding two import-related charges, it is still cheaper to import radios from Q than to produce radios in Y.
(Reminds me of Amazon shopping. The same product is available from two sellers. One offers free delivery. The other charges for delivery. But, the price quoted by the second seller is so low that even after adding the delivery charge the final price is lower than the price quoted by the first seller.)




The statements above, if true, best support which of the following assertions?


Framework

The correct answer would be an inference or at least something that is highly likely to be true based on the passage.

Let’s look at the answer choices.






A. Labor costs in country Q are 10 percent below those in Country Y.
Incorrect. We know that the overall cost of producing radios is lower in Q. But, there is no mention of why that’s the case. Is producing radios cheaper because of cheaper raw materials, more efficient manufacturing processes, lower labour costs, or some other factor? We have no idea. Can’t conclude that a particular component – labor costs – is cheaper.

Additional note: At the risk of getting too technical, let’s say we were given that radios are cheaper to produce in Q entirely because of lower labor costs. Would the labor costs be 10% below?
10% of what? 10% of the labor costs in Y, right?
Let’s say, producing a radio costs $20 in Y and $18 in Q (10% lower).
And, labor costs in Y are $10/ radio.
Then labor costs in Q would be 10 – 2 = $8.
$10 v/s $8. That’s a 20% decrease.
So, although we don’t need to worry about this nuance to eliminate this answer choice, it is still worth noting that the passage talks about 10% of the total cost of producing, and the answer choice mentions 10% of the labor costs.

This answer choice is the most commonly selected incorrect answer on GMAT Club. I believe one reason is that some people treat this question as a ‘strengthen’ question. Remember, our job here is not to support the passage, but to figure out which answer choice is best supported by the passage.



B. Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.
Incorrect. 10% of what kind of jobs? Radio manufacturing jobs? No, “10 percent of the manufacturing jobs”. That means 10% of [all] manufacturing jobs. All we know is that in Y radios are cheaper to get from another country even after including delivery charges. We have no idea about any repercussions on jobs within the radio industry, let alone in all manufacturing industries.

In fact, do we even know where citizens of Country Y are buying their radios from? All we have is a production price comparison. We don’t even know whether citizens of Y are actually choosing radios from Q instead. E.g., maybe Country Y has a ‘Make in Y’ campaign going on, and the citizens prefer buying goods made in Y even if they are a bit more expensive.

Also, even if all forms of sulfite are equally likely to produce an allergic reaction (negation), the argument’s logic remains intact.


C. The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in country Y.
Correct

“Tariff” – ahh! the second additional cost. This one fits.

We’re given that:

Production cost is 10% lower in Q.
Even with transportation fees and tariff charges, it is cheaper to import radios from Q than to produce in Y.
So, the additional costs must add up to less than 10% of the production cost in Y. Otherwise, it would not still be cheaper to import from Q than to produce in Y. The two components together must add up to less than 10%, so one of them (tariff charges) must certainly be less than 10% of the radio production cost in Y.



D. The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q
Incorrect. We can infer that the transportation fees are less than 10% of the cost of manufacturing the radio in Country Y. However, how do transportation fees compare with “10 percent of the cost of manufacturing the radio in Country Q“? We can’t say.

Say, the cost of producing a radio in Y is $100
Then, the cost of producing a radio in Q would be $90 (10% less)
The transportation fees would be within $10 (10% of $100). But, how would the transportation fees compare with $9 (10% of $90)? Can’t say. The transportation fees may be less than $9, exactly $9, or between $9 and $10. So, this answer choice is not supported by the passage.




E. It takes 10 percent less time to manufacture a radio in country Q than it does in Country Y..
Incorrect. The lower production cost could be because of higher efficiency (and thus lower time to manufacture). However, there is nothing mentioned in the passage to indicate a relation between lower production costs and speed of manufacture.

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