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The manager of a spice grading unit argues that the unit should sell its graded chilli straight to retail shops instead of to the wholesale buyer, since the shops pay eighteen rupees a kilogram more than the wholesale buyer pays. Which of the following is an assumption on which the manager's argument depends?

Competition practiceLogical / Critical
  • ACarrying the chilli to many small shops, and waiting on each of them for payment, will cost the unit less for each kilogram than the eighteen rupees the switch gains
  • BThe retail shops will accept the chilli in the same sacks in which the wholesale buyer accepts it
  • CThe unit is under no written agreement to supply the wholesale buyer in the coming season
  • DThe unit grades more chilli in a season than any other unit in the district

Step-by-Step Solution

Eighteen rupees is a gain in price, not a gain in money kept, and the two part company as soon as the new way of selling brings costs of its own. Should delivery and delayed payment eat more than eighteen rupees a kilogram, the unit is poorer for the change. The sacks are a detail; freedom from a contract is a practical condition of making the switch rather than a step in the argument; and the unit's standing among its neighbours is irrelevant either way.
Answer: A) Carrying the chilli to many small shops, and waiting on each of them for payment, will cost the unit less for each kilogram than the eighteen rupees the switch gains

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