question_answer

Direction: For Q 39-40: Read the given passage carefully and answer the questions that follow.

The recent rapid growth of industry has, in some cases, been so excessive that too much manufacturing capacity has been developed in some fields of production, which forces companies to sell their surplus product in world markets at prices lower than normal. This will make it almost impossible to develop local industries producing the same items because consumers will prefer to buy the cheaper imported product.

Why is it necessary for companies to sell products at cheaper prices?

A) The cost of production has been considerably low.

B)  The local industries also manufacture the same product.

C)  There is a heavy demand for these products.

D)  The demand has been lowered significantly.

E)  None of these