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27 Apr 2021, 11:10
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C
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Difficulty:
45%
(medium)
Question Stats:
69% (02:08) correct
31%
(02:15)
wrong
based on 961
sessions
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An economist has argued that consumers often benefit when government permits a corporation to obtain a monopoly. Without competition, a corporation can raise prices without spending nearly as much on advertising. The corporation can then invest the extra money in expensive research or industrial infrastructure that it could not otherwise afford, passing the fruits of these investments on to consumers.
Which one of the following, if true, most strengthens the economist's argument?
(A) The benefits to consumers are typically greater if a corporation invests in expensive research or industrial infrastructure than if that corporation spends the same amount of money in any other way.
(B) The government's permitting a corporation to obtain a monopoly is advantageous for consumers only if that corporation passes the fruits of at least some of its investments on to consumers.
(C) If a corporation obtains a monopoly, the disadvantage to consumers of any higher prices will be outweighed by the advantages from extra investments in expensive research or industrial infrastructure made by that corporation.
(D) Even if a corporation is not permitted to obtain a monopoly, it typically invests some money in expensive research or industrial infrastructure.
(E) If obtaining a monopoly enables a corporation to raise its prices and invest less money in advertising, that corporation will almost inevitably do so.
Which one of the following, if true, most strengthens the economist's argument?
(A) The benefits to consumers are typically greater if a corporation invests in expensive research or industrial infrastructure than if that corporation spends the same amount of money in any other way.
(B) The government's permitting a corporation to obtain a monopoly is advantageous for consumers only if that corporation passes the fruits of at least some of its investments on to consumers.
(C) If a corporation obtains a monopoly, the disadvantage to consumers of any higher prices will be outweighed by the advantages from extra investments in expensive research or industrial infrastructure made by that corporation.
(D) Even if a corporation is not permitted to obtain a monopoly, it typically invests some money in expensive research or industrial infrastructure.
(E) If obtaining a monopoly enables a corporation to raise its prices and invest less money in advertising, that corporation will almost inevitably do so.
27 Apr 2021, 21:51
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It’s C. It tackles the issue of higher prices by establishing how greater investment in research and infrastructure are overall more beneficial for consumers.
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27 Apr 2021, 22:39
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Premise : A corporation upon obtaining monopoly can raise prices without spending nearly as much on advertising, and then invest the extra money in expensive research or industrial infrastructure, passing the fruits of these investments on to consumers.
Conclusion : Consumers often benefit when government permits a corporation to obtain a monopoly.
Prethinking:
There can be multiple assumptions. However, the one that is mandatory to survive the conclusion is -
The investment on research and infrastructure will be beneficial to the consumers.
Now what?
In order to strengthen the argument, we need to look for the choice that ensures that there is no factor that casts a doubt on the potential benefits to the consumers from the research and investment (and hence from extra investment).
In other words :
If X triggers Y , and Y causes the benefits.
We must ensure that:
1. there is no inherent disadvantages/harm from Y.
2. there is no inherent disadvantages/harm from X.
Now, let's scan through the choices :
(A) The benefits to consumers are typically greater if a corporation invests in expensive research or industrial infrastructure than if that corporation spends the same amount of money in any other way.
A benefit, even if not the not the greatest, is still a benefit. So, this choice actually does not impact the argument.
(B) The government's permitting a corporation to obtain a monopoly is advantageous for consumers only if that corporation passes the fruits of at least some of its investments on to consumers.
This information is already there in the stimulus.
Takeaway: Mimicking the stimulus does not contribute anything to the argument.
(C) If a corporation obtains a monopoly, the disadvantage to consumers of any higher prices will be outweighed by the advantages from extra investments in expensive research or industrial infrastructure made by that corporation.
This choice rules out the factor that could cast a doubt or cause disadvantage to the overall benefit from the extra investment. Correct.
(D) Even if a corporation is not permitted to obtain a monopoly, it typically invests some money in expensive research or industrial infrastructure.
The argument is all about what happens in case of monopoly. If there is an investment on research without monopoly, it weakens the role of monopoly and hence the conclusion.
(E) If obtaining a monopoly enables a corporation to raise its prices and invest less money in advertising, that corporation will almost inevitably do so.
The stimulus states it as " a corporation can raise prices without spending nearly as much on advertising. "
This choice states it as "corporation will almost inevitably do so"
This shift from "can" to "will" does not impact the argument because the conclusion is based on the assumption that if a corporation CAN, the corporation WILL.
Hence, C is the winner.
Conclusion : Consumers often benefit when government permits a corporation to obtain a monopoly.
Prethinking:
There can be multiple assumptions. However, the one that is mandatory to survive the conclusion is -
The investment on research and infrastructure will be beneficial to the consumers.
Now what?
In order to strengthen the argument, we need to look for the choice that ensures that there is no factor that casts a doubt on the potential benefits to the consumers from the research and investment (and hence from extra investment).
In other words :
If X triggers Y , and Y causes the benefits.
We must ensure that:
1. there is no inherent disadvantages/harm from Y.
2. there is no inherent disadvantages/harm from X.
Now, let's scan through the choices :
(A) The benefits to consumers are typically greater if a corporation invests in expensive research or industrial infrastructure than if that corporation spends the same amount of money in any other way.
A benefit, even if not the not the greatest, is still a benefit. So, this choice actually does not impact the argument.
(B) The government's permitting a corporation to obtain a monopoly is advantageous for consumers only if that corporation passes the fruits of at least some of its investments on to consumers.
This information is already there in the stimulus.
Takeaway: Mimicking the stimulus does not contribute anything to the argument.
(C) If a corporation obtains a monopoly, the disadvantage to consumers of any higher prices will be outweighed by the advantages from extra investments in expensive research or industrial infrastructure made by that corporation.
This choice rules out the factor that could cast a doubt or cause disadvantage to the overall benefit from the extra investment. Correct.
(D) Even if a corporation is not permitted to obtain a monopoly, it typically invests some money in expensive research or industrial infrastructure.
The argument is all about what happens in case of monopoly. If there is an investment on research without monopoly, it weakens the role of monopoly and hence the conclusion.
(E) If obtaining a monopoly enables a corporation to raise its prices and invest less money in advertising, that corporation will almost inevitably do so.
The stimulus states it as " a corporation can raise prices without spending nearly as much on advertising. "
This choice states it as "corporation will almost inevitably do so"
This shift from "can" to "will" does not impact the argument because the conclusion is based on the assumption that if a corporation CAN, the corporation WILL.
Hence, C is the winner.
