Three large companies and seven small companies currently manufacture a product with potential military applications. If the government regulates the industry, it will institute a single set of manufacturing specifications to which all ten companies will have to adhere. In this case, therefore, since none of the seven small companies can afford to convert their production lines to a new set of manufacturing specifications, only the three large companies will be able to remain in business.
Which of the following is an assumption on which the author's argument relies?
None of the three large companies will go out of business if the government does not regulate the manufacture of the product.
It would cost more to convert the production lines of the small companies to a new set of manufacturing specifications than it would to convert the production lines of the large companies.
Industry lobbyists will be unable to dissuade the government from regulating the industry.
Assembly of the product produced according to government manufacturing specifications would be more complex than current assembly procedures.
None of the seven small companies currently manufactures the product to a set of specifications that would match those the government would institute if the industry were to be regulated.
B: the costs for converting might be the same; but the small companies may not be able to afford this cost of converting. He is assuming that the small companies will have to convert--that they don't already align with the new regulations--because if they are already aligned with the new regulations, they will not have to convert (ie, they are already converted!). If they are already converted, then the new regulations will not cause the small companies to collapse.
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