GMAT OG 2020更新题目整理
A company that manufactures plastic products from recyclable plastic is, surprisingly, unconcerned that economic conditions may worsen, despite analysts’ belief that consumers would then consider ecofriendly plastic products an expensive luxury. But the company reasons that it will be able to lower its prices because, in a weakened economy, other ecofriendly plastic manufacturers are likely to fail. Demand among manufacturers for recyclable plastics as raw materials would then plummet, creating an oversupply of such materials, making them less expensive for the manufacturer to purchase and thus lowering the company's costs.
Which of the following, if true, most weakens the company's reasoning?
A. Smaller ecofriendly plastic manufacturers are more likely to fail in a weakened economy than larger ecofriendly manufacturers are.
B. Some retailers whose sales include various companies’ ecofriendly plastic products have struggled in recent years despite the overall good economy.
C. Consumers would likely soon learn of the oversupply of recyclable plastics and cease recycling them, significantly raising manufacturers' raw-material costs.
D. Retailers, including retailers that cater to consumers seeking certain types of ecofriendly products, may lose some business if economic conditions worsen.
E. The plastics used by the company in its products were, after a recent investigation by a regulatory body, declared to be safe for consumers. This Answer is Correct
Situation A company that manufactures products from recyclable plastics believes that if economic conditions worsen it will be able to lower its prices. It believes its costs will decline because other ecofriendly plastic manufacturers will fail, thereby reducing the demand for recyclable plastics as raw materials.
Reasoning What would most weaken the reasoning? Suppose the company's costs did not decline and the company consequently could not reduce its prices. Even if demand for recyclable plastics as raw materials weakens in an economic downturn, the company's costs may nonetheless not decline if for some reason the supply of recyclable plastics also declines. If so, then the company may well not be able to lower its prices and stay profitable.
Correct. Suppose consumers learn of the oversupply of recyclable plastics and stop recycling them as a result; the oversupply may therefore not last long, and indeed a shortage might arise. This would lead not to lower raw-material costs, as the company argues, but to higher raw-material costs.
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