Critical Reasoning — Implicit Assumptions Decision: “The company will increase the price of all its products to tackle its precarious financial position.”

Introduction / Context:
A firm in financial difficulty plans to raise prices across the board. We must identify which background belief is essential for this to be a sensible step toward improvement.

Given Data / Assumptions:

• I. The company may wipe out all past losses by this decision.
• II. Buyers may continue to buy even after the increase.
• III. The company has enough resources to continue production for a few more months.

Concept / Approach:
Price hikes only improve finances if revenue holds or improves (price * quantity). The key necessity is that demand does not collapse after the increase.

Step-by-Step Solution:

Verification / Alternative check:
Negate II (buyers will not buy): the decision would be counterproductive. Negating I or III does not directly invalidate the logic behind raising prices.

Why Other Options Are Wrong:

• I and III / II and III / None: each misses the central demand assumption captured in II.

Common Pitfalls:
Assuming strategic goals must “wipe out all losses,” or confusing liquidity horizon with pricing rationale.

Final Answer:
Only II is implicit