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21 Aug 2024, 01:30
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
84% (01:32) correct
16%
(01:53)
wrong
based on 149
sessions
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The cost of producing cell phones in Country A is 12 percent less than the cost of producing cell phones in Country C. Even after transportation fees are added, it is still cheaper for a company to import cell phones from Country A to Country C than to produce cell phones in Country C.
The statements above, if true, best support which of the following assertions?
A. Labor costs in Country A are 12 percent below those in Country C.
B. Importing cell phones from Country A to Country C will eliminate 12 percent of the manufacturing jobs in Country C.
C. The transportation fee on a cell phone imported from Country A to Country C is less than 12 percent of the cost of manufacturing the cell phone in Country C.
D. The fee for transporting a cell phone from Country A to Country C is more than 12 percent of the cost of manufacturing the cell phone in Country A.
E. It takes 12 percent less time to manufacture a cell phone in Country A than it does in Country C.
The statements above, if true, best support which of the following assertions?
A. Labor costs in Country A are 12 percent below those in Country C.
B. Importing cell phones from Country A to Country C will eliminate 12 percent of the manufacturing jobs in Country C.
C. The transportation fee on a cell phone imported from Country A to Country C is less than 12 percent of the cost of manufacturing the cell phone in Country C.
D. The fee for transporting a cell phone from Country A to Country C is more than 12 percent of the cost of manufacturing the cell phone in Country A.
E. It takes 12 percent less time to manufacture a cell phone in Country A than it does in Country C.
21 Aug 2024, 09:10
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The cost of producing cell phones in Country A is 12 percent less than the cost of producing cell phones in Country C. Even after transportation fees are added, it is still cheaper for a company to import cell phones from Country A to Country C than to produce cell phones in Country C.
Cost of production in country A is Ca
Cost of production in country C is Cc
Ca = 88/100 Cc
Importing from country A to C including transportation is cheaper than producing in country C
Ca +Ta-c < Cc
88/100 Cc + Ta-c < Cc
Ta-c < 12/100 Cc
IMO C
Posted from my mobile device
Cost of production in country A is Ca
Cost of production in country C is Cc
Ca = 88/100 Cc
Importing from country A to C including transportation is cheaper than producing in country C
Ca +Ta-c < Cc
88/100 Cc + Ta-c < Cc
Ta-c < 12/100 Cc
IMO C
Posted from my mobile device
01 Sep 2024, 05:45
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Bunuel
Official Explanation
Reading the question: we will try evaluating this brief argument by matching terms.
Evidence Term
Matches?
Conclusion Term
Lower production costs and higher transportation costs
≠
Cheaper to import
Country A, C
=
Country A, C
Cell phones
=
Cell phones
The key word in the conclusion is "cheaper," and we notice it doesn't appear at all in the evidence. So the logical connection to attack is the connection between lower production costs, higher transportation costs, and "cheaper to import." ("Import" also is only in the conclusion.) We'll use that expectation as our filter.
Applying the filter: (C) and (D) have the right terms. (A), (B), and (E) all introduce new terms--labor, jobs, time--and introducing a new term usually generates a problem. (C) and (D) are similar, but switch the positions of the countries. We are talking about producing in Country A and shipping to Country C. That situation is described by answer choice (C).
Logical proof: We can prove (C) with the negation test. If the transportation fee is equal to or greater than the money saved in production, then how could it be cheaper to produce in Country A? It couldn't be. Therefore choice (C) is the correct answer.
The correct answer is (C).
