Question

Statement: In order to reduce the gap between income and expenditure, the company has decided to increase the price of its product from next month. Assumptions: I. The rate will remain more or less same after the increase. II. The expenditure will more or less remain the same in near future. III. The rival companies will also increase the price of the similar product.

• A. Only I and II are implicit.
• B. Only II and III are implicit.
• C. Only III is implicit.
• D. None of these

Hint:

Implicit assumptions must support the decision directly.

Answer 1

The Correct Option is A

To reduce gap by increasing price: - It assumes expenditure remains stable (II). - It assumes increased price will sustain (I). - Rival pricing (III) is not necessary.