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      Question

      In each question a statement is given, followed by two

      assumptions, numbered I and II. An assumption is supposed or taken for granted. You have to consider the statement and assumptions and decide which of the assumptions is implicit in the statement. Statement: Tesla announced that it might stop selling cars in Country X if the government enforces a new regulation requiring all electric vehicle manufacturers to share their proprietary battery technology with local competitors. Assumptions: I. Tesla believes that sharing its proprietary battery technology could harm its competitive advantage. II. The government of Country X intends to promote fair competition in the electric vehicle market.
      A Only I is implicit Correct Answer Incorrect Answer
      B Only II is implicit Correct Answer Incorrect Answer
      C Both I and II are implicit Correct Answer Incorrect Answer
      D Neither I nor II is implicit Correct Answer Incorrect Answer

      Solution

      The statement says Tesla may halt car sales if required to share its proprietary technology. This implies: Assumption I is implicit — Tesla considers sharing its technology a threat to its market position. Assumption II is also implicit — the government’s regulation aims to foster fair competition among manufacturers.

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