PrepTest 61, Section 3, Question 7

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Baxe Interiors, one of the largest interior design companies in existence, currently has a near monopoly in the corporate market. Several small design companies have won prestigious awards for their corporate work, while Baxe has won none. Nonetheless, the corporate managers who solicit design proposals will only contract with companies they believe are unlikely to go bankrupt, and they believe that only very large companies are unlikely to go bankrupt.

Baxe Interiors, one of the largest interior design companies in existence, currently has a near monopoly in the corporate market. Several small design companies have won prestigious awards for their corporate work, while Baxe has won none. Nonetheless, the corporate managers who solicit design proposals will only contract with companies they believe are unlikely to go bankrupt, and they believe that only very large companies are unlikely to go bankrupt.

Baxe Interiors, one of the largest interior design companies in existence, currently has a near monopoly in the corporate market. Several small design companies have won prestigious awards for their corporate work, while Baxe has won none. Nonetheless, the corporate managers who solicit design proposals will only contract with companies they believe are unlikely to go bankrupt, and they believe that only very large companies are unlikely to go bankrupt.

Baxe Interiors, one of the largest interior design companies in existence, currently has a near monopoly in the corporate market. Several small design companies have won prestigious awards for their corporate work, while Baxe has won none. Nonetheless, the corporate managers who solicit design proposals will only contract with companies they believe are unlikely to go bankrupt, and they believe that only very large companies are unlikely to go bankrupt.

Question
7

The statements above, if true, most strongly support which one of the following?

There are other very large design companies besides Baxe, but they produce designs that are inferior to Baxe's.

Baxe does not have a near monopoly in the market of any category of interior design other than corporate interiors.

For the most part, designs that are produced by small companies are superior to the designs produced by Baxe.

At least some of the corporate managers who solicit design proposals are unaware that there are designs that are much better than those produced by Baxe.

The existence of interior designs that are superior to those produced by Baxe does not currently threaten its near monopoly in the corporate market.

E
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