- Sun Feb 21, 2016 12:00 am
#32472
Complete Question Explanation
Assumption—SN. The correct answer choice is (E)
Here, the author starts the stimulus with the “some people say...” technique, telling us that, periodically, the public complains about predatory pricing, which is defined as being when “a company deliberately sells its products at prices low enough to drive its competitors out of business.” Despite this periodic outcry, the author concludes, in the second sentence, that predatory pricing (i.e., “this practice”) should be acceptable.
The author’s sole reason for reaching this conclusion is that although the practice drives the company’s competitors out of business, the continuing threat of new competition keeps the company from “raising its prices to unreasonable levels.” Essentially, by having just one premise leading to its definitive conclusion, the author is acting as if this fact, by itself, is enough to show the conclusion is valid. In other words, the author treats the premise as if it is a sufficient condition that shows the conclusion must be the case. We could diagram this relationship as:
PPC =practice prevents a company from raising prices to unreasonable levels
PA = practice should be acceptable
Sufficient Necessary
PPC PA
The question stem tells us that this is an Assumption question. Our prephrase is that the correct answer choice will supply this conditional rule the author implicitly applied in reaching the conclusion.
Answer choice (A): It is not required that competitors actually enter the market. The threat of renewed competition is what keeps a company from raising prices unreasonably.
Answer choice (B): By definition, it appears that several competing companies cannot simultaneously engage in predatory pricing, not for long at least. However, even if they were to do so, the conclusion was concerned about preventing companies from raising prices to unreasonable levels. If multiple companies engaged in predatory pricing, the result would be to lower prices to unreasonable levels.
Answer choice (C): The size of the companies is not relevant to the argument.
Answer choice (D): While it was the threat of competition that the author focused on here, the conclusion does not require that the threat of competition be the only thing that keeps companies from raising prices.
Answer choice (E): This is the correct answer choice, because it provides a rule that, while not precisely the same as the rule applied by the author, is very similar and has the same effect. We can diagram this answer choice as:
PPNRUP = pricing practice does not result in unreasonable prices
PA = practice should be acceptable
Sufficient Necessary
PPNRUP PA
Assumption—SN. The correct answer choice is (E)
Here, the author starts the stimulus with the “some people say...” technique, telling us that, periodically, the public complains about predatory pricing, which is defined as being when “a company deliberately sells its products at prices low enough to drive its competitors out of business.” Despite this periodic outcry, the author concludes, in the second sentence, that predatory pricing (i.e., “this practice”) should be acceptable.
The author’s sole reason for reaching this conclusion is that although the practice drives the company’s competitors out of business, the continuing threat of new competition keeps the company from “raising its prices to unreasonable levels.” Essentially, by having just one premise leading to its definitive conclusion, the author is acting as if this fact, by itself, is enough to show the conclusion is valid. In other words, the author treats the premise as if it is a sufficient condition that shows the conclusion must be the case. We could diagram this relationship as:
PPC =practice prevents a company from raising prices to unreasonable levels
PA = practice should be acceptable
Sufficient Necessary
PPC PA
The question stem tells us that this is an Assumption question. Our prephrase is that the correct answer choice will supply this conditional rule the author implicitly applied in reaching the conclusion.
Answer choice (A): It is not required that competitors actually enter the market. The threat of renewed competition is what keeps a company from raising prices unreasonably.
Answer choice (B): By definition, it appears that several competing companies cannot simultaneously engage in predatory pricing, not for long at least. However, even if they were to do so, the conclusion was concerned about preventing companies from raising prices to unreasonable levels. If multiple companies engaged in predatory pricing, the result would be to lower prices to unreasonable levels.
Answer choice (C): The size of the companies is not relevant to the argument.
Answer choice (D): While it was the threat of competition that the author focused on here, the conclusion does not require that the threat of competition be the only thing that keeps companies from raising prices.
Answer choice (E): This is the correct answer choice, because it provides a rule that, while not precisely the same as the rule applied by the author, is very similar and has the same effect. We can diagram this answer choice as:
PPNRUP = pricing practice does not result in unreasonable prices
PA = practice should be acceptable
Sufficient Necessary
PPNRUP PA