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11 Mar 2024, 16:57
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
82% (01:59) correct
18%
(02:01)
wrong
based on 133
sessions
History
Date
Time
Result
Not Attempted Yet
The price of titanium dioxide, a key ingredient in house paint, is increasing due to limited supplies because many mining companies that once produced titanium ore have shifted production to other ores. Without titanium dioxide, paint colors are less bright and more coasts of paint must be applied to compensate. Companies that produce paint have concluded that they will soon need to increase the prices on the paint they produce.
Which of the following would, if true, most strongly support the companies’ conclusion?
A. Prices for paint ingredients other than titanium dioxide are not likely to increase.
B. Plants that make titanium dioxide from titanium ore can be idled and restarted relatively quickly.
C. The production cost of paint without titanium dioxide is not low enough to make such paint economically viable to compete with paint containing titanium dioxide.
D. Because of recent increases in the price of titanium ore, mining companies that shifted production to other ores are now shifting back to producing titanium ore.
E. Manufacturers of paint typically contract with chemical makers to lock in the price for at least a year's supply of titanium dioxide at a time.
Which of the following would, if true, most strongly support the companies’ conclusion?
A. Prices for paint ingredients other than titanium dioxide are not likely to increase.
B. Plants that make titanium dioxide from titanium ore can be idled and restarted relatively quickly.
C. The production cost of paint without titanium dioxide is not low enough to make such paint economically viable to compete with paint containing titanium dioxide.
D. Because of recent increases in the price of titanium ore, mining companies that shifted production to other ores are now shifting back to producing titanium ore.
E. Manufacturers of paint typically contract with chemical makers to lock in the price for at least a year's supply of titanium dioxide at a time.
05 Oct 2024, 07:14
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- The price of titanium dioxide is increasing due to limited supplies.
- Titanium dioxide is crucial for paint quality (brightness and coverage).
- Paint companies conclude they will need to increase their prices.
We need to find the option that most strongly supports the companies' conclusion that they will need to raise paint prices.
A. Prices for paint ingredients other than titanium dioxide are not likely to increase.
This actually weakens the argument for price increases, as it suggests other costs are stable.
B. Plants that make titanium dioxide from titanium ore can be idled and restarted relatively quickly.
This suggests that supply might be able to adjust quickly, potentially stabilizing prices. It doesn't support the need for price increases.
C. The production cost of paint without titanium dioxide is not low enough to make such paint economically viable to compete with paint containing titanium dioxide.
This strongly supports the conclusion. If companies can't switch to cheaper alternatives without titanium dioxide, they will have to absorb the higher costs of titanium dioxide, likely leading to price increases.
D. Because of recent increases in the price of titanium ore, mining companies that shifted production to other ores are now shifting back to producing titanium ore.
This suggests that titanium ore supply might increase, potentially stabilizing or reducing titanium dioxide prices. It doesn't support the need for paint price increases.
E. Manufacturers of paint typically contract with chemical makers to lock in the price for at least a year's supply of titanium dioxide at a time.
This suggests that paint manufacturers might be protected from immediate price increases, at least in the short term. It doesn't support the need for imminent price increases.
(C) is the correct answer.
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