kruttikaaggarwal wrote:
I think C also casts doubt on the decision. If new source mines will not produce enough material, profits will still be down.
I think the term "PROFIT MARGIN" is the of major concern here.
In option C, even if the the mines do not produce enough raw material, the product will be generated in less amount but the profit margin will increase as raw material would be cheaper (Although overall profit may decrease, but profit margin will increase)
In option A, since competition is high, the company will have to price the product aggressively, thereby decreasing profit margin.