Consider the following argument: A regional courier company plans to replace its gasoline-powered delivery vans with electric vehicles in order to lower its annual fuel expenditures. The company's director claims that making this fleet replacement will increase the company's net annual profit.
True or False: The director's argument depends on the unstated assumption that the cost savings from lower fuel expenditures will not be exceeded by the costs of acquiring and maintaining the electric vehicles.
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True. The argument assumes that the reduction in fuel expenses will not be negated or outweighed by the new expenses associated with electric vehicles.
The conclusion asserts a net financial gain based on reducing a single cost category (fuel). For net profit to increase, total financial benefits must outweigh total costs. If the secondary costs of electric vehicle adoption outweigh the fuel savings, the conclusion breaks down. Hence, assuming those secondary costs will not exceed fuel savings is logically necessary.
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Identifying Unstated Assumptions (Negation Test)