The statements above, if true, most strongly support which of the following?
(A) Mechanicorp will encounter difficulties in trying to set a price for its newest product that will promote sales without threatening to compromise the company’s reputation.
(B) Mechanicorp achieves large annual profits, despite small profits per unit sold, by means of a high volume of sales.
(C) Mechanicorp made a significant computational error in calculating the production costs for its newest product.
(D) Mechanicorp’s newest product is intended to perform tasks that can be performed by other devices costing less to manufacture.(A)
(E) Mechanicorp’s production processes are designed with the same ingenuity as are the products that the company makes.
3. Companies in the country of Kollontay can sell semiconductors in the country of Valdivia at a price that is below the cost to Valdivian companies of producing them. To help those Valdivian companies, the Valdivian legislature plans to set a minimum selling price in Valdivia for semiconductors manufactured in Kollontay that is ten percent greater than the average production costs for companies in Valdivia.
Which of the following, if true, most seriously threatens the success of the plan?
(A) The annual rate of inflation in Kollontay is expected to exceed ten percent within the next year.
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