Lakewood municipal officials hope that if they offer Acme Manufacturing a sub-

stantial reduction in local  taxes, Acme will not relocate its plant to another region. 

If Acme accepts the offer and stays, Lakewood will lose a substantial portion of

its a x revenue.  Interestingly, the officials are not even considering an offer from

Zenex Corporation to take over Acme’s facilities if Acme leaves and to pay taxes

at the currently prevailing rates. 

 Which of the following, if true, provides the strongest rationale for the officials to

prefer giving Acme a tax reduction over accepting Zenex’s offer?

 A     Risks associated with the hazardous chemicals that Zenex uses would cause

       the value of property around what is now the Acme plant to decline steeply. 

    B   If Zenex were to take over Acme’s manufacturing facilities in Lakewood, it

       would take about a month for Zenex to adapt the facilities to its own pur-

       poses and to go into operation. 

   C   Even if Acme accepts Lakewood’s offer, employment at the Acme plant is

       unlikely to increase. 

   D   There are no large manufacturing plants located in Lakewood other than the

       Acme plant. 

   E   Zenex has a stronger reputation than Acme does for being a major corporate

       sponsor of cultural and recreational activities in the places in which it

       operates manufacturing plants. 

答案 A