📊 GMAT Exam Prep

An argument recommends that a company invest heavily in manufacturing widgets, citing a report from a decade ago that projected a huge surge in widget demand. What is the most critical assumption the argument makes regarding the report's projections?

A The company has the resources to meet the increased demand.
B The projections from ten years ago are still valid and relevant today.
C Competitors have not also increased their widget manufacturing capacity.
D Widget manufacturing is a profitable endeavor.

✓ Correct Answer: Option B

The argument assumes that past projections remain accurate for the present or future. Market conditions, technological advancements, and consumer preferences can change significantly over a decade, rendering old projections unreliable.

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