McCray's Dairy Industries stands to reap tremendous profits in the coming year. The new milking apparatus and packing

[BTGmoderatorDC]

McCray's Dairy Industries stands to reap tremendous profits in the coming year. The new milking apparatus and packing equipment purchased and installed last year allows McCray's to produce the same quantity of dairy products at less than one third of the previous cost. Restaurants and academic institutions throughout the state will choose to purchase all their dairy products from McCray's, because they will be available at a much lower cost than similar products from rival producers.

The argument above assumes which of the following?

A) Statewide demand for dairy products will increase substantially in the coming year
B) Buyers at restaurants and academic institutions throughout the state would prefer McCray's dairy products over rival dairy products if cost were no object
C) Physicians see no reason to predict a sharp increase in the number of dairy allergies throughout the state.
D) Statewide production of dairy products will not increase in the coming year.
E) The quality of McCray's dairy products meets the acceptability standards of most restaurants and academic institutions throughout the state.



OA E

Source: Magoosh