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The author states that costs cannot be reduced with the current system of paying for these costs. He then provides a reason as to why it is so. To compare, the author then cites the various reforms of 1980s. To support this analogy he gives an example to show the interrelationship.

Hence option C.
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The argument exemplifies how a measure taken previously by the government did not have the desired effect due to the interrelationships. Therefore, the argument will probably proceed by an analogy to characterise interrelationships.
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