From time to time there is a public outcry against predatory pricing-where a company deliberately sells its products ...

Victoria on September 22, 2019

Hi @Minerva,

The passage argues that predatory pricing - "where a company deliberately sells its products at prices low enough to drive its competitors out of business" - should be acceptable despite occasional public outcry. Why? Because "the mere threat of renewed competition will prevent the company from raising its prices to unreasonable levels."

We are looking for the assumption on which the argument depends. In other word,s if the answer choice is altered or negated, then the argument will fall apart.

D is incorrect because its alteration does not impact the argument that predatory pricing is acceptable. The argument remains the same even if we substitute that regulations keep companies from raising prices to unreasonable levels.

Comparatively, if we negate E, then we can no longer conclude that predatory pricing is acceptable. If any pricing practice that results in unreasonable prices is acceptable, then the fact that companies are prevented from raising their prices to unreasonable levels would make the practice unacceptable.

Hope this helps! Please let us know if you have any further questions.