Question:
Relations between the factory and the dealer are distant and usually strained as the factory tries to force cars on the dealers to smooth out production. Relations between the dealer and the customer are equally strained because dealers continuously adjust prices — make deals — to adjust demand with supply while maximizing profits. This becomes a system marked by a lack of long-term commitment on either side, which maximizes feelings of mistrust. In order to maximize their bargaining positions, everyone holds back information — the dealer about the product and the consumer about his true desires.
Relations between the factory and the dealer are distant and usually strained as the factory tries to force cars on the dealers to smooth out production. Relations between the dealer and the customer are equally strained because dealers continuously adjust prices — make deals — to adjust demand with supply while maximizing profits. This becomes a system marked by a lack of long-term commitment on either side, which maximizes feelings of mistrust. In order to maximize their bargaining positions, everyone holds back information — the dealer about the product and the consumer about his true desires.
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When completing a paragraph, identify the key tone and relationship dynamics discussed before the blank. The correct option will naturally extend the idea without introducing unrelated consequences.
Updated On: Jul 31, 2025
- As a result, ‘deal making’ becomes rampant, without concern for customer satisfaction.
- As a result, inefficiencies creep into the supply chain.
- As a result, everyone treats the other as an adversary, rather than as an ally.
- As a result, fundamental innovations are becoming scarce in the automobile industry.
- As a result, everyone loses in the long run.
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The Correct Option is C
Solution and Explanation
The paragraph discusses strained relationships and mutual mistrust between the factory, dealer, and customer. Each side withholds information to maximize its own bargaining position. This creates a scenario where cooperation is minimal, and each party views the other with suspicion. The most logical conclusion that follows from this build-up is that everyone treats the other as an adversary, rather than as an ally.
Options (A), (B), (D), and (E) are possible consequences but do not directly capture the immediate interpersonal dynamic described in the paragraph. Option (C) directly reflects the adversarial tone and mistrust outlined.
Options (A), (B), (D), and (E) are possible consequences but do not directly capture the immediate interpersonal dynamic described in the paragraph. Option (C) directly reflects the adversarial tone and mistrust outlined.
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