Mrs. Sha owns a sweets shop. The daily requirement of sugar in her shop to make sweets is very high, so she prefers to buy it in bulk. Mrs. Sha has to spend lesser on the machinery and raw materials required to process sugar than buying the processed sugar from the market. Mrs. Sha can easily hire some people to process sugar for her but she still buys processed sugar from the market stating that it is profitable. The statements above, if true, best support which of the following assertions? Correct Answer After adding the amount that she has to pay to the people for extracting sugar, it exceeds the amount that she spends on buying the processed sugar from the market. The above statements discuss the benefits of processing sugar for Mrs. Sha than buying it from the market, which she prefers more. The statements clearly state that it is cheaper for her to process sugar herself than buy it from the market, so option 1 cannot be right. The sugar from the market might have impurities but the sugar that she would process herself would not have any, so option 2 cannot be right either. Option 4 makes an assumption without any basis and option 5 is irrelevant as the cost of machinery has already been counted, so option 4 and 5 cannot be right. From the statements, we can conclude that she will have to hire someone to process sugar for her. If including that, she has to pay more on processing sugar than buying sugar from the market then she would face losses, which is given in option 3 and hence, option 3 is the right answer.