Economist: ChesChem, a chemical manufacturer located in Chester, uses natural gas for its enormous energy needs. ββββββββββ βββββββ βββ βββββ βββββ ββ ββββ ββ βββββββ ββ ββ ββββ ββ βββββββ ββ βββ ββββ ββ βββββββ βββ ββ βββββββ βββββββ ββββ ββββ βββββ ββββ ββ βββββββ ββββββββ ββββ ββββ βββ βββββββββββββ ββββββββββ ββ βββββββ ββ ββ βββ ββββ ββ βββββββ βββ ββ βββββββ βββββββββ ββ ββββ ββββββββ ββββ ββββ βββ βββββββββββββ ββββββββββ ββ βββββββ
The author concludes that if the cost of natural gas in Chester increases even slightly, ChesChem will move its manufacturing operations to Tilsen.
What makes the author believe this?
Because if the cost of natural gas in Chester becomes MORE than twice the cost of natural gas in Tilsen, then ChesChem will move its manufacturing operations to Tilsen.
In addition, currently natural gas costs twice as much in Chester as it does in Tilsen.
The author assumes that if the cost of natural gas in Chester increases, the cost in Tilsen wonβt also increase. (This is why the author thinks any increase in cost in Chester would make the ratio of cost in Chester to cost in Tilsen more than 2 to 1.)
The economist's argument requires assuming ββββ
ChesChem spends far ββββ ββ βββββββ βββ ββββ ββ βββ βββββ βββββββ
the price of βββββββ βββ ββ ββββββ ββββ βββ ββββββββ
ChesChem would not ββ ββββββββββ ββ βββ ββββββ βββββ βββββββββ
the only benefit ββββββββ βββββ βββββββ ββ ββββββ βββ βββββββββββββ ββββββββββ ββ ββββββ ββ βββββ ββββββ βββββ
ChesChem will not ββββ βββ βββββββββββββ ββββββββββ ββ ββββββ ββββββ βββ βββββ ββ βββββββ βββ ββ βββββββ βββββββββ