An argument states: 'Our primary competitor lowered its product prices last quarter and reported a significant increase in sales volume. To improve our financial performance, we should immediately implement a similar price reduction.' Which of the following is an unstated, critical assumption in this argument?

✓ Correct Answer: Option B

Lowering prices increases sales volume, but if the price reduction is too steep or the increase in volume is insufficient, total revenue (price x quantity) or profit (revenue - costs) could actually decrease. The argument wrongly assumes volume increase guarantees financial improvement.