Each year, company X signs a contract with shipping firm Y, stating that shipping firm Y will do all the company's international shipping. Shipping firm Y has a policy called "natural increases," which raises the price for the service that it provides to company X each year by an inflation-commensurate percentage of the previous year's shipping rates. This new price then becomes the baseline for the next year's increases; this policy is intended to let shipping firm Y make profits that keep pace with inflation.
Which of the following statements, if true, is the best basis for a criticism of "natural increases" as an economically sound practice for company X as it exists as part of the international shipping contract?
Each year, company X signs a contract with shipping firm Y, stating that shipping firm Y will do all the company's international shipping. Shipping firm Y has a policy called "natural increases," which raises the price for the service that it provides to company X each year by an inflation-commensurate percentage of the previous year's shipping rates. This new price then becomes the baseline for the next year's increases; this policy is intended to let shipping firm Y make profits that keep pace with inflation.
Which of the following statements, if true, is the best basis for a criticism of "natural increases" as an economically sound practice for company X as it exists as part of the international shipping contract?
ACompany X's stockholders believe that Company X regularly spends more than it should on shipping costs.
BThis practice may cause company X to spend an increasingly large proportion of their profits on shipping as company Y's costs rise.
CThe rate of inflation has varied significantly over the past decade.
DIf shipping firm Y overcharged company X in the past, then company X will continue to overpay for shipping services.
EThe pricing method based on "natural increases" may discourage initiatives for company Y to develop and utilize new shipping routes.
C 啊 X公司要求每年相同的价格增长率(an inflation-commensurate percentage)来抵消通货膨胀率 (make profits that keep pace with inflation) 但是如果每年的通货膨胀率都在变化甚至通货紧缩 那这个 natural increases 就很不合理啦
C只说了"The rate of inflation has varied significantly over the past decade"
1. 没说“通货紧缩”,通货紧缩只是varied的一个可能方向。如果通货膨胀大幅超越natural increases呢?是不是就支持了“"natural increases" as an economically sound practice for company X”的结论呢?
2.C只说了"over the past decade",没说这个trends会持续到现在,这个也是你自己假设的。