The following appeared in a memo from the president of Viva Tech a manufacturer of high tech medical equipment In order to reduce costs we should close some of our existing small assembly plants and build a large central plant Grandview would be an ideal

It is recommended by the President of VIVA-Tech to close their existing small assembly plant and build a new central plant in grand view. President comes to this conclusion based on three assumption. First the Grandview has high adult population which will help them to staff their plant quickly therefore it will help them to reduce cost as they will not spend much time and money in recruiting. Second the average wages of workers in Grand View is very less as compared to other locations. Third their cost will reduce as they will operate without paying city taxes for three years. In several aspects, however, the evidence provided lends little credible support for the argument.
Firstly, they assumed that the adult population of Grandview will be recruited easily and quickly to staff their plant however, this might not be the case –perhaps it is possible that the adult populations of Grandview are not so very solicitous to work in manufacturing of medical equipment. Additionally it is possible that the very meagre of adult population likes to work in medical manufacturing company whereas the majority of them might be working in other domain such as farming, education, etc. Therefore without considering all other aspects, the arguer makes unfair assumption that the large adult population will help them to staff their plant easily and quickly thereby curtailing overall cost.
Secondly, it is prematurely assume by the arguer that because the average wages earned by the workers in Grandview is low, the production cost will be low, but what if the wages earned by the workers who work in medical equipment manufacturing is high compared to the workers who work in other domain with very less wages. For instance, if there are total 20 adult population out of which five work in medical equipment manufacturing company who earn around 10k per month but the wages earned by the rest of the sixteen adult workers is only 2k then average comes out to be 6k only. Consequently, the average wages might remain low but the wages of workers who work in medical equipment manufacturing company remains high. Therefore the second assumptions does nothing to prove that the low average wages of workers in Grandview will help them to be reduce cost.
Thirdly, the arguer assumed that the town council’s offer which allows them to work for three years without paying any city taxes will facilitate them in reducing cost but the arguer doesn’t considered the scenario after three years, what if the town councils of Grandview after three years charges more taxes than the Viva-Tech might ever thought of, if it is possible it may drive the company to the loss. Considering this aspect the arguer makes unwarranted assumption.
In sum it can be stated that the recommendation is spurious, at least without much evidence to support it.