StrengthenDiff: Medium

Logic Breakdown

Passage Summary: An economist suggests that monopolies can be good because they can spend their 'ad money' on better technology and infrastructure for their customers instead.

Conclusion: Government-sanctioned monopolies can frequently result in benefits for the consumer.

Reasoning: Monopolies save money by not needing to compete through advertising, allowing them to reinvest those funds into research and infrastructure that benefit the public.

Analysis: The economist's argument is quite optimistic about corporate behavior. It assumes that a company without competition will choose to reinvest its savings into consumer-facing improvements rather than simply increasing executive bonuses or dividends. To strengthen this, we need an answer that makes it more likely that these savings will actually reach the consumer. Look for information suggesting that monopolies are incentivized to innovate or that the cost savings from advertising are substantial enough to outweigh the typical downsides of a lack of competition.

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4.

Which one of the following, if true, most strengthens the economist's argument?

Correct Answer
C
It directly affirms that any consumer harm from higher prices is outweighed by the consumer benefits from the monopolist’s extra investments, which is precisely the net-benefit claim the argument needs.
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