Harper’s Pencils manufactures and sells the same pencils as Johnson’s Supply. Employee wages account for forty percent of the cost of manufacturing pencils at both factories. Harper’s is seeking a competitive edge over Johnson’s supply. Therefore, to promote this end, Harper’s should lower employee wages. Which of the following, if true, seriously weakens the argument above?

Question

Examsnet · Accepted Answer

Correct Answer is :  Lowering wages would reduce the quality of employee work and this reduced quality would lead to lowered sales.

GMAT Verbal Reasoning Practice Test 2