Which one of the following, if true, would most undermine the connection that the author draws between increased size...

DavidW on April 7, 2020

Choice E

Hi! Could you please elaborate why answer choice E is the correct answer? Thanks so much!

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SamA on April 12, 2020

Hello @DavidW,

First, let's identify the connection between increased size and monopoly power. We can find this in the second paragraph. Basically, as a company increases in size, its workers can become specialized and the productivity per worker will increase. The author claims that this leads to monopoly, because the big companies can afford to drive out the small businesses.

We are asked to undermine this connection. In other words, I'm looking for something that says that a large, specialized company will not necessarily become a monopoly. Answer choice E is correct, because it introduces two problems that a company will face while specializing its employees.
1. Higher training costs
2. Increased turnover
These factors "offset" any gains in productivity. Therefore, a company like this is not likely to become a monopoly.