Cell Phone Manufacture

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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?

Review: Cell Phone Manufacture


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).


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