The cost of producing nuclear submarines in Atlantis is 10 percent less than the cost of producing nuclear submarines in Utopia. Even after transportation fees and tariff charges are added, it is still cheaper for a military establishment to import nuclear submarines from Atlantis to Utopia than to produce nuclear submarines in Utopia.

The statements above, if true, best support which of the following assertions?

Answer Choices

Correct answer marked below

Labor costs in Atlantis are 10 percent below those in Utopia.

Importing nuclear submarines from Atlantis to Utopia will eliminate 10 percent of the manufacturing jobs in Utopia.

The tariff on a nuclear submarine imported from Atlantis to Utopia is less than 10 percent of the cost of manufacturing the nuclear submarine in Utopia.

Correct

The fee for transporting a nuclear submarine from Atlantis to Utopia is more than 10 percent of the cost of manufacturing the nuclear submarine in Atlantis.

It takes 10 percent less time to manufacture a nuclear submarine in Atlantis than it does in Utopia.

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What this question tests

What it tests

Whether you can draw a conclusion that must follow from the stated facts.

Common trap

Choosing an option that could be true or is likely true — inference answers must be guaranteed by the passage.