Question

The American division of the Acme running shoe company should begin marketing running shoes with double-thick soles. Acme's Swedish division is selling a large number of these items, and is enjoying its most profitable quarter ever. Which of the following is an assumption made by the author of the argument above?

• A. Acme's Brazilian division is also selling a large number of running shoes with double-thick soles.
• B. Swedes and Americans have similar tastes in music.
• C. Acme is the only running shoe company that manufacturers double-thick soles.
• D. The running shoe market in America tends to follow the same trends as does the market in Sweden.
• E. Acme has experienced financial troubles in the last three quarters.

Hint:

Whenever an argument uses evidence from one place, time, or group to draw a conclusion about another, it is making an argument by analogy. The core assumption is always that the two things being compared are similar in relevant respects.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
This is a Critical Reasoning question asking you to identify a necessary assumption. The argument uses evidence from one market (Sweden) to make a recommendation for another market (America). This is an argument by analogy.
Step 2: Detailed Explanation:
The Recommendation (Conclusion): The American division should sell double-thick sole shoes.
The Evidence: The Swedish division is selling these shoes successfully and is very profitable.
The Logical Gap/Assumption: For the success in Sweden to be relevant evidence for a plan in America, the author must assume that the two markets are similar. If the Swedish and American markets are completely different, then what works in Sweden might not work in America, and the evidence would be useless.
Let's analyze the options:

(A) Success in a third market (Brazil) is not necessary for the argument about America based on Sweden.
(B) Tastes in music are irrelevant to tastes in running shoes.
(C) Competition is not addressed. The argument could hold even if there are competitors.
(D) This is the correct answer. It directly states the assumption that the two markets are comparable. For the analogy to be valid, the author must assume that trends (like the popularity of a certain type of shoe) in Sweden are a good predictor of trends in America.
(E) The company's prior financial state doesn't have to be troubled for this recommendation to be made. They might just want to be even more profitable.
Step 3: Final Answer:
The argument relies on an analogy between the Swedish and American markets. For this analogy to be valid, it must be assumed that the markets are similar in relevant ways, specifically that they follow the same trends.