Insect infestations in certain cotton-growing regions of the world have caused dramatic increases in the price of cotton on the world market. By contrast, the price of soybeans has long remained stable. Knowing that cotton plants mature quickly, many soybean growers in Ortovia plan to cease growing soybeans and begin raising cotton instead, thereby taking advantage of the high price of cotton to increase their income significantly, at least over the next several years.
Which of the following, if true, most seriously weakens the plan's chances for success?
1, A manufacturer of workstations for computer-aided design seeks to increase sales to its most important corporate customers. Its strategy is to publish very low list prices for workstations in order to generate interest among the buyers for those corporations. Which of the following, if characteristic of the marketplace, would tend to cause the manufacturer’s strategy to fail? A. The proposed list prices would seem low to a typical buyer for the manufacturer’s most important corporate customers. B. The capabilities of workstations suitable for given jobs are not significantly different among various manufacturers. C. The manufacturer’s most important corporate customers employ as buyers persons who are very knowledgeable about prices for workstations for customer-aided design. D. Customers differ significantly in the percentage of resources they can devote to computer workstations. E. Buyers for corporations that purchase workstations for computer-aided design receive bonuses for negotiating large discounts from the list price
2, Insect infestations in certain cotton-growing regions of the world have caused dramatic increases in the price of cotton on the world market. By contrast, the price of soybeans has long remained stable. Knowing that cotton plants mature quickly, many soybean growers in Ortovia plan to cease growing soybeans and begin raising cotton instead, thereby taking advantage of the high price of cotton to increase their income significantly, at least over the next several years. Which of the following, if true, most seriously weakens the plan’s chances for success? A. The cost of raising soybeans has increased significantly over the past several years and is expected to continue to climb. B. Tests of a newly developed, inexpensive pesticide have shown it to be both environmentally safe and effective against the insects that have infested cotton crops. C. In the past several years, there has been no sharp increase in the demand for cotton and for goods made out of cotton. D. Few consumers would be willing to pay significantly higher prices for cotton goods than they are now paying. E. The species of insect that has infested cotton plants has never been known to attack soybean plants.