Multiple choice

Mining companies in Marsland can sell mineral Hydranite in Venusland at a price that is below the cost to Venusland mining companies of quarrying it. To help those Venusland mining companies, the Venusland administration plans to set a minimum selling price in Venusland for Hydranite mined in Marsland that is twenty percent greater than the average quarrying cost for mining companies in Venusland.

Which of the following, if true, most seriously threatens the success of the plan?

  1. Emerging mining companies from places other than Marsland will still be able to sell Hydranite in Venusland at a price below the cost to Venusland mining companies to quarry it.

  2. Venusland is not the only country where mining companies of Marsland currently sell Hydranite.

  3. Some Venusland mining companies that sell Hydranite have announced that they plan to decrease their price for Hydranite.

  4. The administration of Marsland will also set a minimum price for selling Hydranite in that country.

  5. The annual rate of inflation in Marsland is expected to exceed twenty percent within the next year.
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A Correct answer
Explanation

If what is stated in option (5) turns out to be true, then Venusland mining companies will still face the problem of mining companies from other places selling Hydranite at a price lower than that of Venusland mining companies which does not serve the purpose of helping Venusland mining companies. Hence, option (5) is correct.

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