1.
The Passage talks about inconsistency between the General Density Dependance model and the evidence provided by certain studies in Paragraph 2
"A possible explanation for this inconsistency is that legitimation and competitive forces transcend national boundaries, while studies typically restrict their analysis to the national level. "
. The inconsistency is attributed to the fact that the studies did not take into account the international forces that affect Legtimation and competitive forces. Hence Option (D).
2.
In the Second Paragraph, the author seeks to explain the inconsistency between the General Density Dependance model and the findings of certain studies . Hence Option (C)
3.
"At high density levels, however, competitive effects outweigh legitimation effects, discouraging foundings."
Here the author clearly mentions that when there is a high density level of firms, further foundings will be discouraged. Hence Option (A)
4.
(A) question the validity of an economic model- Incorrect – The author does not question of the validity of the economic model anywhere in the passage. In fact, the first line suggests that it can be applied to explain foundings. The author is also looking to explain discrepant findings in Paragraph 2.
(B) point out some inconsistencies within an economic model -Incorrect – Though the author does point of inconsistencies between certain studies and the economic model, that is not the primary purpose of the passage as the author is consistently trying to justify the model's use.
(C) outline an economic model and suggest revisions to it- Incorrect – The author is not suggesting any revisions in his passage.
(D) describe an economic model and provide specific examples to illustrate its use- Incorrect – The author does not provide multiple examples illustrating the use of the the General Density Dependance model.
(E) explain why an economic model remains valid despite inconsistent research results - Correct – The author explains that the Economic Model can be used by justifying inconsistent results of study findings.
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