Which of the following, if true, most strongly suggests that Red Bull

QUESTION

Which of the following, if true, most strongly suggests that Red Bull should NOT produce a line of enhanced waters?

A) To date, none of the successful enhanced-water manufacturers have shown a connection between consuming their products and improved health.
B) Enhanced water is typically sold by the same retailers that sell energy drinks.
C) Enhanced-water drinkers show strong loyalty to existing brands.
D) The cost of enhanced water is lower per ounce than the cost of energy drinks, but it is sold in larger containers and for a similar price.
E) Building awareness of a new enhanced water would be difficult for a company that has not had any success in another market.

ANSWER

Answer: C
Explanation: C) If Choice C were true, then it would be difficult for a new company to break into the market. So Choice C would be a reason not to produce enhanced waters. Choice A is tempting but goes the other way because it shows you can be successful without proven results. This makes the market look more attractive. Choice B strengthens the argument by pointing out similarities between energy drinks and enhanced water. Choice D has background information but is not a reason not to step in to the market. Choice E is tempting but irrelevant because Red Bull has been successful elsewhere. If anything, Choice E suggests that other companies would have a hard time breaking into the market, and that would make the market more attractive for Red Bull.