GMAT Critical Reasoning (CR) | Re: Need some advise with question

In Oaktown, a company owns a large factory and a superstore, which supplies most of the residents’ needs; the company also employs most of the residents. The president of the company decides it would be good for both the company and the residents if he automated most of the work in the factory; automation would lower production costs and the prices of the goods sold in the store. Which of the following statements below, if true, best highlights a flaw in the president’s plan? *


A. When the
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