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IMO B

B) shifts without justification from treating something as one way of achieving a goal to treating it as the only way of achieving that goal

1st line of the passage states .. one of the reason , not the only reason
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Factory manager: One reason the automobile parts this factory produces are expensive is that our manufacturing equipment is outdated and inefficient. Our products would be more competitively priced if we were to refurbish the factory completely with new, more efficient equipment. Therefore, since to survive in today’s market we have to make our products more competitively priced, we must completely refurbish the factory in order to survive.

The reasoning in the factory manager’s argument is flawed because this argument:

(A) fails to recognize that the price of a particular commodity can change over time - WRONG. Change can be on higher side or on lower side.
(B) shifts without justification from treating something as one way of achieving a goal to treating it as the only way of achieving that goal - CORRECT. The word "must" is a big jump, suggesting that factory improvement is the only way to be competitive.
(C) argues that one thing is the cause of another when the evidence given indicates that the second thing may in fact be the cause of the first - WRONG. Not at all within the realms of this passage. Irrelevant.
(D) recommends a solution to a problem without first considering any possible causes of that problem - WRONG. "Without" would be wrong to claim as cause is identified.
(E) fails to make a definite recommendation and instead merely suggests that some possible course of action might be effective - WRONG. It is a definite recommendation by the FM.

Answer B.
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