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Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?
  • a)
    The cost of transportation from state A to state C is more than 30 percent of the production cost.
  • b)
    The production cost of cars in state B is lower in comparison to state A.
  • c)
    Only entry tax at state C is more for the products originating in state A.
  • d)
    Entry tax at state C is more for the products originating in state B.
  • e)
    The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.
Correct answer is option 'C'. Can you explain this answer?
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Statement: The cost of manufacturing cars in state A is 30 percent le...
From option 1, even if the cost of transportation from state A to state C is more than 30 percent of the production cost, the final price might be lesser than that of state B. Hence, option 1 is not the correct answer. Option 2 is contrary to the fact given in the statement If entry tax at state C is more for the products originating in state B, then the final price of cars from state B will be more than that of state A. Hence, option 4 is not the correct answer. Option 5 does not necessarily mean that cars from state B will be cheaper than cars from state A. If only entry tax at state C is more for the products originating in state A, then cars from state B might be cheaper than cars from state A.
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Most Upvoted Answer
Statement: The cost of manufacturing cars in state A is 30 percent le...
Understanding the Conclusion
The conclusion states that despite the lower production cost of cars in state A, after accounting for transportation fees and taxes, it is more cost-effective to manufacture cars in state B for selling in state C.
Supporting the Conclusion
Option C supports this conclusion because it highlights a specific factor that increases the overall cost of manufacturing in state A:
Key Points:
- Higher Entry Tax for State A:
- If the entry tax at state C is more for products originating from state A, this adds to the overall cost of manufacturing and selling cars from state A.
- Impact on Cost Comparison:
- This higher entry tax diminishes the advantage of the lower production cost in state A, making it less advantageous compared to state B once all costs are factored in.
Why the Other Options Do Not Support the Conclusion
- Option A: If the transportation cost from A to C is more than 30 percent of production cost, it could still be cheaper overall than state B depending on other costs, so it does not directly support the conclusion.
- Option B: If production costs in state B are lower, it contradicts the premise that A is cheaper; hence it does not support the conclusion.
- Option D: If entry tax is higher for state B, it wouldn't help the conclusion favoring state B as the cheaper option.
- Option E: This implies that the total costs for state B are lower, but does not address the specific impact of taxes on state A's costs.
Conclusion
Overall, option C is the strongest support for the conclusion by emphasizing the critical role of entry taxes in determining the cost-effectiveness of manufacturing locations.
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Directions: Read the passage carefully and select the best answer out of the given four alternatives.What if globally designed products could radically change how we work, produce and consume? Several examples across continents show the way we are producing and consuming goods could be improved by relying on globally shared digital resources, such as design, knowledge and software. Imagine a prosthetic hand designed by geographically dispersed communities of scientists, designers and enthusiasts in a collaborative manner via the web. All knowledge and software related to the hand is shared globally as a digital commons. People from all over the world who are connected online and have access to local manufacturing machines can, ideally with the help of an expert, manufacture different commodities. There are no patent costs to pay for. Less transportation of materials is needed, since a considerable part of the manufacturing takes place locally; maintenance is easier, products are designed to last as long as possible, and costs are thus much lower.Take another example. Small-scale farmers need agricultural machines to support their work. Big companies rarely produce machines specifically for small-scale farmers. And if they do, the maintenance costs are high and the farmers have to adjust their farming techniques to the logic of the machines. Technology, after all, is not neutral. So the farmers decide to design the agricultural machines themselves. They produce machines to accommodate their needs and not to sell them for a price on the market. They share their designs with the world – as a global digital commons.Experts are now exploring the contours of an emerging mode of production that builds on the confluence of the digital commons of knowledge, software, and design with local manufacturing technologies. They call this model "design global, manufacture local" and argue that it could lead to sustainable and inclusive forms of production and consumption. It follows the logic that what is light (knowledge, design) becomes global while what is heavy (manufacturing) is local, and ideally shared. When knowledge is shared, materials tend to travel less and people collaborate driven by diverse motives. The profit motive is not totally absent, but it is peripheral. Decentralised open resources for designs can be used for a wide variety of things, medicines, furniture, prosthetic devices, farm tools, machinery and so on.There is now a new idea called cosmolocalism that comes partly from discourse on cosmopolitanism which asserts that each of us has equal moral standing, even as nations treat people differently. The dominant economic system treats physical resources as if they were infinite and then locks up intellectual resources as if they were finite. But the reality is quite the contrary. We live in a world where physical resources are limited, while non-material resources are digitally reproducible and therefore can be shared at a very low cost.However, there are some limitations too. A limitation of this new model is its two main pillars, such as information and communication as well as local manufacturing technologies. These issues may pertain to resource extraction, exploitative labour, energy use or material flows. A thorough evaluation of such products and practices would need to take place.Q. What is the most likely reason for the profit motive being only peripheral under the methodology of design global and manufacture local?

Directions: Read the passage carefully and select the best answer out of the given four alternatives.What if globally designed products could radically change how we work, produce and consume? Several examples across continents show the way we are producing and consuming goods could be improved by relying on globally shared digital resources, such as design, knowledge and software. Imagine a prosthetic hand designed by geographically dispersed communities of scientists, designers and enthusiasts in a collaborative manner via the web. All knowledge and software related to the hand is shared globally as a digital commons. People from all over the world who are connected online and have access to local manufacturing machines can, ideally with the help of an expert, manufacture different commodities. There are no patent costs to pay for. Less transportation of materials is needed, since a considerable part of the manufacturing takes place locally; maintenance is easier, products are designed to last as long as possible, and costs are thus much lower.Take another example. Small-scale farmers need agricultural machines to support their work. Big companies rarely produce machines specifically for small-scale farmers. And if they do, the maintenance costs are high and the farmers have to adjust their farming techniques to the logic of the machines. Technology, after all, is not neutral. So the farmers decide to design the agricultural machines themselves. They produce machines to accommodate their needs and not to sell them for a price on the market. They share their designs with the world – as a global digital commons.Experts are now exploring the contours of an emerging mode of production that builds on the confluence of the digital commons of knowledge, software, and design with local manufacturing technologies. They call this model "design global, manufacture local" and argue that it could lead to sustainable and inclusive forms of production and consumption. It follows the logic that what is light (knowledge, design) becomes global while what is heavy (manufacturing) is local, and ideally shared. When knowledge is shared, materials tend to travel less and people collaborate driven by diverse motives. The profit motive is not totally absent, but it is peripheral. Decentralised open resources for designs can be used for a wide variety of things, medicines, furniture, prosthetic devices, farm tools, machinery and so on.There is now a new idea called cosmolocalism that comes partly from discourse on cosmopolitanism which asserts that each of us has equal moral standing, even as nations treat people differently. The dominant economic system treats physical resources as if they were infinite and then locks up intellectual resources as if they were finite. But the reality is quite the contrary. We live in a world where physical resources are limited, while non-material resources are digitally reproducible and therefore can be shared at a very low cost.However, there are some limitations too. A limitation of this new model is its two main pillars, such as information and communication as well as local manufacturing technologies. These issues may pertain to resource extraction, exploitative labour, energy use or material flows. A thorough evaluation of such products and practices would need to take place.Q. Each of the following statements is a limitation of the 'design global, manufacture local' approach, except

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Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?a) The cost of transportation from state A to state C is more than 30 percent of the production cost.b) The production cost of cars in state B is lower in comparison to state A.c) Only entry tax at state C is more for the products originating in state A.d) Entry tax at state C is more for the products originating in state B.e) The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.Correct answer is option 'C'. Can you explain this answer?
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Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?a) The cost of transportation from state A to state C is more than 30 percent of the production cost.b) The production cost of cars in state B is lower in comparison to state A.c) Only entry tax at state C is more for the products originating in state A.d) Entry tax at state C is more for the products originating in state B.e) The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.Correct answer is option 'C'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?a) The cost of transportation from state A to state C is more than 30 percent of the production cost.b) The production cost of cars in state B is lower in comparison to state A.c) Only entry tax at state C is more for the products originating in state A.d) Entry tax at state C is more for the products originating in state B.e) The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?a) The cost of transportation from state A to state C is more than 30 percent of the production cost.b) The production cost of cars in state B is lower in comparison to state A.c) Only entry tax at state C is more for the products originating in state A.d) Entry tax at state C is more for the products originating in state B.e) The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?a) The cost of transportation from state A to state C is more than 30 percent of the production cost.b) The production cost of cars in state B is lower in comparison to state A.c) Only entry tax at state C is more for the products originating in state A.d) Entry tax at state C is more for the products originating in state B.e) The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?a) The cost of transportation from state A to state C is more than 30 percent of the production cost.b) The production cost of cars in state B is lower in comparison to state A.c) Only entry tax at state C is more for the products originating in state A.d) Entry tax at state C is more for the products originating in state B.e) The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?a) The cost of transportation from state A to state C is more than 30 percent of the production cost.b) The production cost of cars in state B is lower in comparison to state A.c) Only entry tax at state C is more for the products originating in state A.d) Entry tax at state C is more for the products originating in state B.e) The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?a) The cost of transportation from state A to state C is more than 30 percent of the production cost.b) The production cost of cars in state B is lower in comparison to state A.c) Only entry tax at state C is more for the products originating in state A.d) Entry tax at state C is more for the products originating in state B.e) The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?a) The cost of transportation from state A to state C is more than 30 percent of the production cost.b) The production cost of cars in state B is lower in comparison to state A.c) Only entry tax at state C is more for the products originating in state A.d) Entry tax at state C is more for the products originating in state B.e) The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Statement: The cost of manufacturing cars in state A is 30 percent less than the cost of manufacturing cars in state B. After transportation fee for the differential distances of states A and B and the interstate taxes, it is cheaper to manufacture cars in state B than in state A for selling these cars in State C. Which of the following supports the conclusion drawn in the above statement?a) The cost of transportation from state A to state C is more than 30 percent of the production cost.b) The production cost of cars in state B is lower in comparison to state A.c) Only entry tax at state C is more for the products originating in state A.d) Entry tax at state C is more for the products originating in state B.e) The total transportation cost of cars from state B to state C and entry tax of cars at state C is less than 30 percent of the production cost of cars in state B.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CAT tests.
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