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The cost of producing radios in Country Q is ten percent less than the cost of producing radios in Country Y. even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from Country Q to Country Y than to produce radios in Country Y.
The statements above, if true, best support which of the following assertions?
C is the best answer
Explanation
If the tariff on importing radios from Country Q to Country Y were as high as ten percent or more of the cost of producing radios in Y, then, contrary to what the passage says, the cost of importing radios from Q to Y would be equal to or more than the cost of producing radios in Y. thus, the tariff cannot be that high, and C is the best answer. A and E give possible partial explanations for the cost difference, but neither is supported by the passage because the cost advantage in Q might be attributable to other factors. B and D are both consistent with the information in the passage, but the passage provides no evidence to support them.
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