Supermarket Bulk Buying Assumption
XAT 2010 · Verbal Ability & Logical Reasoning · Medium · Critical Reasoning
Unlike other retail outlets, where items are purchased in any number of units the customer wants, in super - markets items are grouped in bulk packages. This bulk buying offers savings to the customer. The option to buy at wholesale prices by buying in bulk makes super - markets a practical choice for budget - conscious consumers.
Which of the following is an assumption necessary to the author's argument?
- A.
Super - markets often have great buying power and lower overhead costs, so they can offer a greater variety of products than regular retail outlets.
- B.
Super - markets are often more conveniently located and have better parking facilities.
- C.
The emergence of super- markets has caused many small retail stores to close down and thus eliminate competition.
- D.
It is economically wise to buy single items since bulk passages seldom offer significant savings.
- E.
The financial savings from purchasing bulk packages may outweigh the inconvenience of being unable to purchase in any number of units that suits the customers' needs.
E
Explanation
The argument concludes that buying bulk packages makes supermarkets practical for budget-conscious buyers. This requires the assumption that the financial savings offset the inconvenience of purchasing fixed bulk quantities.
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