BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

1000 CR doubt

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Senior | Next Rank: 100 Posts
Posts: 33
Joined: Fri Oct 09, 2009 7:03 am
Thanked: 2 times

1000 CR doubt

by aiming800 » Sat Mar 20, 2010 11:11 am
Hi Guys,
I need help with the below CR question. Please post your choice along with the explanation.GMAT

instructors,please help!!!



Statement of a United States copper mining company: Import quotas should be imposed on the less expensive copper mined outside the country to maintain the price of copper in this country; otherwise, our companies will not be able to stay in business.
Response of a United States copper wire manufacturer: United States wire and cable manufacturers purchase about 70 percent of the copper mined in the United States. If the copper prices we pay are not at the international level, our sales will drop, and then the demand for United States copper will go down.
If the factual information presented by both companies is accurate, the best assessment of the logical relationship between the two arguments is that the wire manufacturer's argument
(A) is self-serving and irrelevant to the proposal of the mining company
(B) is circular, presupposing what it seeks to prove about the proposal of the mining company
(C) shows that the proposal of the mining company would have a negative effect on the mining company's own business
(D) fails to give a reason why the proposal of the mining company should not be put into effect to alleviate the concern of the mining company for staying in business
(E) establishes that even the mining company's business will prosper if the mining company's proposal is rejected


Cheers,
:)
Top
Source: — Critical Reasoning |
Master | Next Rank: 500 Posts
Posts: 182
Joined: Sat Apr 11, 2009 4:55 am
Thanked: 11 times

by Giorgio » Sat Mar 20, 2010 11:51 am
C
Top
Senior | Next Rank: 100 Posts
Posts: 33
Joined: Fri Oct 09, 2009 7:03 am
Thanked: 2 times

by aiming800 » Sat Mar 20, 2010 12:27 pm
Hi Giorgio,

Thanks for your reply but as stated in my post i am expecting the answers with the corresponding explanations.


GMAT experts/instructors please help me out with the above question.


Thanks.
Top
Master | Next Rank: 500 Posts
Posts: 232
Joined: Sun Feb 28, 2010 10:47 pm
Thanked: 10 times

by Phirozz » Sat Mar 20, 2010 5:24 pm
(A) is self-serving and irrelevant to the proposal of the mining company. This is my answer
(B) is circular, presupposing what it seeks to prove about the proposal of the mining company. Mining co is seeking for imposing import duty on imported mined copper whereas wire manufacturing co is concerned about prices at international level for its own benefit. So both are not related to each other. So eliminated
(C) shows that the proposal of the mining company would have a negative effect on the mining company’s own business. out of scope
(D) fails to give a reason why the proposal of the mining company should not be put into effect to alleviate the concern of the mining company for staying in business. copper wire co is not attempting to provide reason for not implementing mining co's proposal rather it is concerned about itself. so eliminated(E) establishes that even the mining company’s business will prosper if the mining company’s proposal is rejected. Irrelevant. against mining co's proposal.
Top
Senior | Next Rank: 100 Posts
Posts: 33
Joined: Fri Oct 09, 2009 7:03 am
Thanked: 2 times

by aiming800 » Sun Mar 21, 2010 12:54 pm
Thanks Phirozz.Even in my view the answer should be A, but unfortunately the OA is C.


Now i am not able to understand the logic behind the OA.


Can i find some help from the GMAT instructors on this?
Top
Master | Next Rank: 500 Posts
Posts: 232
Joined: Sun Feb 28, 2010 10:47 pm
Thanked: 10 times

by Phirozz » Mon Mar 22, 2010 10:01 pm
aiming800 wrote:Thanks Phirozz.Even in my view the answer should be A, but unfortunately the OA is C.


Now i am not able to understand the logic behind the OA.


Can i find some help from the GMAT instructors on this?
Answer is C only. OA is right. Last sentence of copper mining co's stamement create confusion, but we are looking from cable manufacturers' point of view. So its completely right.
thanx
Top
Legendary Member
Posts: 594
Joined: Thu Aug 14, 2008 11:51 pm
Thanked: 12 times

by nervesofsteel » Tue Mar 23, 2010 1:38 am
aiming800 wrote:Hi Guys,
I need help with the below CR question. Please post your choice along with the explanation.GMAT

instructors,please help!!!



Statement of a United States copper mining company: Import quotas should be imposed on the less expensive copper mined outside the country to maintain the price of copper in this country; otherwise, our companies will not be able to stay in business.
Response of a United States copper wire manufacturer: United States wire and cable manufacturers purchase about 70 percent of the copper mined in the United States. If the copper prices we pay are not at the international level, our sales will drop, and then the demand for United States copper will go down.
If the factual information presented by both companies is accurate, the best assessment of the logical relationship between the two arguments is that the wire manufacturer's argument
(A) is self-serving and irrelevant to the proposal of the mining company
(B) is circular, presupposing what it seeks to prove about the proposal of the mining company
(C) shows that the proposal of the mining company would have a negative effect on the mining company's own business
(D) fails to give a reason why the proposal of the mining company should not be put into effect to alleviate the concern of the mining company for staying in business
(E) establishes that even the mining company's business will prosper if the mining company's proposal is rejected


Cheers,
:)
Here is my take....

Mining company is favoring import quota for cheap imports
and Wire manufacturer is going for cheap prices of copper they get from international market...

as wire manufacturer says that they consume 70% of copper from US origin..
they use 30% from outside and if prices of 30% of copper will increase , the demand for
70% copper will also decrease ...due to lack of overall demand

SO proposal of Mining company will have negative impact on itself...

SO C is the ans
Top
User avatar
Master | Next Rank: 500 Posts
Posts: 176
Joined: Sun Feb 21, 2010 6:00 am
Thanked: 2 times
GMAT Score:710

by Pdgmat2010 » Tue Mar 23, 2010 4:44 am
since the question asks us to look from the Wire manufacturer's perspective,
i believe C should be right.

For the same reasoning as above
70% domestic CU + 30% international CU = current cu cost is lower

70% domestic CU + 30% international CU ( NOW more expensive) = overall expense is more

which in turn might indicate that the demand is lowered, leading to an overall reduction in consumption.
this will affect US mining companies more.
Top
Post new topic Post Reply
• Page 1 of 1