x
Select Test Select Question Types

Reasoning - Logical Reasoning:

Logical Reasoning

MCQ - 92-8044

Harper’s Pencils manufactures and sells the same pencils as Johnson’s Supply. Employee wages account for forty percent of the cost of manufacturing pencils at both factories. Harper’s is seeking a competitive edge over Johnson’s supply. Therefore, to promote this end, Harper’s should lower employee wages.

Question:

Harper’s Pencils manufactures and sells the same pencils as Johnson’s Supply. Employee wages account for forty percent of the cost of manufacturing pencils at both factories. Harper’s is seeking a competitive edge over Johnson’s supply. Therefore, to promote this end, Harper’s should lower employee wages.

Which of the following, if true, seriously weakens the argument above?

  1. Because they make a small number of specialty artist’s pencils, pencil manufacturers cannot receive volume discounts on raw materials.
  2. Lowering wages would reduce the quality of employee work and this reduced quality would lead to lowered sales.
  3. Harper’s Pencils has taken away twenty percent of Johnson’s Supply business over the last year.
  4. Lowering wages would reduce the quality of employee work and this reduced quality would lead to lowered sales.
  5. Many people who work for manufacturing plants live in areas in which the manufacturing plant they work for is the only industry.

Correct Answer: B

Explanation:

The effect of lowering wages is to reduce quality sufficiently to reduce sales. This is a good reason to doubt that wage cuts would give Johnson any competitive edge.

Previous Question
Next Question
Back to Section

Record Performance

243 MCQ for effective preparation of the test of Logical Reasoning of Logical Reasoning section.

Read the MCQ statement: Harper’s Pencils manufactures and sells the same pencils as Johnson’s Supply. Employee wages account for forty percent of the cost of manufacturing p .... the argument above?, keenly and apply the method you have learn through the video lessons for Logical Reasoning to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 92-8044.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

Share This Page

Full Films
Full Films
TV Serials
TV Serials
Short Films
Short Films
Upcoming Films
Upcoming Films