- Fri Jan 21, 2011 12:00 am
#22776
Complete Question Explanation
Must Be True-SN. The correct answer choice is (E)
This stimulus consists of the following conditional rules:
Slower to Adopt Technology → Production costs fall more slowly
Production costs fall more slowly → Unable to lower prices as rapidly
Unable to lower prices as rapidly → Squeezed out of market.
You should infer that if a country’s manufacturers are slower than are other countries’ to adopt new technology, that country will be squeezed out of the global market. The contra positive also follows: if a country is still in the global market, its companies have been adopting new technology as quickly as those of other nations.
Answer choice (A): This choice is unsupported, and incorrect. It is similar to a mistaken negation of the last statement. Furthermore, you should not assume from the stimulus that the only way to raise prices is to have squeezed foreign competitors out of the market, or even that an incapability or unwillingness to lower prices at all would lead to being squeezed out of the global market, since the stimulus was only about the relative capability to lower prices. It is possible that none of the countries could lower prices.
Answer choice (B): This is a mistaken reversal, and is incorrect.
Answer choice (C): This is a mistaken reversal, and is incorrect.
Answer choice (D): This is a mistaken negation, and is incorrect. It is necessary, not sufficient, to adopt technology.
Answer choice (E): This is the correct answer choice. The first two statements can be linked together to show that if a company does not adopt technology as quickly, it will not be able to lower its prices as rapidly. The contra positive is that if a country can lower its prices as rapidly, it adopts technology as quickly as its competitors.
Must Be True-SN. The correct answer choice is (E)
This stimulus consists of the following conditional rules:
Slower to Adopt Technology → Production costs fall more slowly
Production costs fall more slowly → Unable to lower prices as rapidly
Unable to lower prices as rapidly → Squeezed out of market.
You should infer that if a country’s manufacturers are slower than are other countries’ to adopt new technology, that country will be squeezed out of the global market. The contra positive also follows: if a country is still in the global market, its companies have been adopting new technology as quickly as those of other nations.
Answer choice (A): This choice is unsupported, and incorrect. It is similar to a mistaken negation of the last statement. Furthermore, you should not assume from the stimulus that the only way to raise prices is to have squeezed foreign competitors out of the market, or even that an incapability or unwillingness to lower prices at all would lead to being squeezed out of the global market, since the stimulus was only about the relative capability to lower prices. It is possible that none of the countries could lower prices.
Answer choice (B): This is a mistaken reversal, and is incorrect.
Answer choice (C): This is a mistaken reversal, and is incorrect.
Answer choice (D): This is a mistaken negation, and is incorrect. It is necessary, not sufficient, to adopt technology.
Answer choice (E): This is the correct answer choice. The first two statements can be linked together to show that if a company does not adopt technology as quickly, it will not be able to lower its prices as rapidly. The contra positive is that if a country can lower its prices as rapidly, it adopts technology as quickly as its competitors.