Critical Reasoning: The cost of producing radios in Country Q is ten percent less than the cost of producingradios in Country Y. Even after transportation fees and tariff charges are added to it, it is still cheaper for a company to importradios from Country Q to Country Ythan to produceradios in Country Y. Q: The statements above, if true, best support which of the following assertions?

A Labor costs in Country Q are ten percent below those in Country Y.

B Importing radios from Country Q to Country Y will eliminate ten percent of themanufacturing jobs in Country Y.

C The tariffon radio imported from Country Qto Country Yis less than ten percent of the cost of manufacturing the radio in Country Y.

D The fee fortransporting a radio from Country Q to country Y is more than ten percent of the cost of manufacturing the radio in Country Q.

Solution

Correct Answer: Option C

Solution

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