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Reading Comprehension :: RE: Manager and myths

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Author: ceilidh.erickson
Posted: Sun Feb 08, 2015 11:53 am (GMT -8)

It's also worth pointing out why the other answers were incorrect:

A. A company’s labor costs are not affected by the efficiency of its work processes.
The passage says the opposite in line 19. Furthermore, an answer choice to an inference question that contains definitive language like "are not affected" is usually wrong.

C. It is more difficult for managers to compare their companies’ labor rates with those of competitors than to compare labor costs.
The passage says the opposite in lines 25-28.

D. A company whose labor rates are high is unlikely to have lower labor costs than other companies.
The passage's main point is that labor rate and labor cost are different statistics; we can't necessarily compare companies with different labor rates.

E. Managers often use information about competitors’ labor costs to calculate those companies’ labor rates.
We're told that journalists and consultants do this, not managers. We have no reason to infer this.
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Ceilidh Erickson
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