Statement: Courier companies, led by major brands, plan a 25–30% hike in courier/parcel rates after domestic airlines raised onboard courier rates by 67%.\nAssumptions:\nI. Without raising rates, the industry would suffer huge losses and might shrink or shut operations.\nII. The hike in courier/parcel rates may compensate for the increased airline charges.

Introduction / Context:
When upstream transport costs jump (airlines +67%), downstream logistics firms often pass through part of the cost to customers. The plan to raise courier rates assumes that doing so will offset a meaningful share of the added expense.

Given Data / Assumptions:

• Airline onboard courier rates increased sharply.
• Courier firms plan a 25–30% price hike as a response.

Concept / Approach:
The minimum assumption behind a pass-through decision is that the increase will reimburse or adequately cushion the cost shock (Assumption II). A catastrophic scenario (huge losses/closure) is a stronger claim than necessary to justify a price adjustment, and thus not required (Assumption I).

Step-by-Step Solution:
1) If II were false (no reimbursement), a hike would not solve the problem; thus II is necessary.2) The industry need not be on the brink of shutdown (I) to justify a price revision; even margin pressure suffices.

Verification / Alternative check:
Standard cost-plus pricing relies on partial/total pass-through; closure is an extreme, not a prerequisite.

Why Other Options Are Wrong:
They either miss the core compensation logic (II) or add unnecessary drama (I).

Final Answer:
Only assumption II is implicit.