General Studies · Critical Reasoning
Decaffeinated coffee is highly costly compared to regular coffee even though the process by which coffee beans are decaffeinated is fairly simple and inexpensive. The producers cannot account for this higher cost. Select the assumption on which this argument relies.
- 1Price differences between products can generally be accounted for by factors such as supply and demand, not by differences in production costs.
- 2There is almost no competition among companies that process decaffeinated coffee.
- 3Retail coffee sellers do not believe that consumers are content to pay more for decaffeinated coffee than for regular coffee.
- 4The beans used for producing decaffeinated coffee do not cost significantly more before processing than the beans used for producing regular coffee.✓
Correct answer
The beans used for producing decaffeinated coffee do not cost significantly more before processing than the beans used for producing regular coffee.
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