QUESTION TEXT: The retail price of decaffeinated coffee is…
QUESTION TYPE: Necessary Assumption
CONCLUSION: Decaf can’t possibly cost more because it’s more expensive to produce.
REASONING: The decaffeination process is not very expensive.
ANALYSIS: The argument sounds very good. If decaf coffee doesn’t cost more to process, then how could it possibly cost more to produce?
Well, there could be other costs apart from processing. The negation of the correct answer tells us that the beans could cost more to buy. That would explain the higher price.
- Actually, the argument admits that decaf costs more to process. It just doesn’t cost much more.
- It doesn’t matter what causes differences in product prices as long as the cause isn’t production costs in the particular case of decaf coffee.
- Even if there was a lot of competition, the argument’s point that processing doesn’t cost much is still true.
- If retail sellers did expect that consumers would pay more for decaf then that could explain why the price is higher. The assumption in this answer choice definitely isn’t necessary.
- CORRECT. If decaf beans cost a lot more then that could account for the price difference, even though the processing cost is the same.
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