Critical Reasoning (CR) | Re: If the minimum wage increases again, MacDowells will have to increase

If the minimum wage increases again, MacDowell’s will have to increase the prices it charges for its products. And if that happens, MacDowell’s has a choice: it can spend more on advertising to attract more customers, or its sales and profitability will decrease. But since the extra advertising costs will simply raise total expenses, increasing those costs will still result in an overall decrease in profitability.

Which one of the following conclusions can be logically drawn from the statements above?

A. Unless the minimum wage increases, MacDowell’s will continue to remain profitable.
B. If the minimum wage increases, MacDowell’s will no longer be able to remain profitable.
C. MacDowell’s will see its profitability increase if the minimum wage does not increase.
D. MacDowell’s will be unable to maintain its current profitability if the minimum wage increases.
E. If MacDowell’s sees a reduction in its profitability, that means that the
...

Statistics : Posted by VivekPrateek • on 01 Nov 2023, 01:30 • Replies 1 • Views 112

---