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1. The following appeared as part of an annual report sent to stockholders by Olympic Foods, a processor of frozen foods. “Over time, the costs of processing go down because as organizations learn how to do things better, they become more efficient. In color film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day service in 1970 to 20 cents for one-day service in 1984. The same principle applies to the processing of food. And since Olympic Foods will soon celebrate its twenty-fifth birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profits. 1false analogy: The food industry is not analogous to the color film industry. 2causal oversimplification: Other factors that may contribute t to the cost decline of the printing cost should be considered and ruled out. 3gratuitous assumption: The conclusion of the argument is based on a gratuitous assumption that the company can minimize cost and maximize profit because the company has been conducted for 25 years. 2. The following appeared in a memorandum from the business department of the Apogee Company. “When the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting costs and helping the company maintain better supervision of all employees.” 1causal oversimplification: It is imprudent to conclude that the establishment of the field offices is the only reason explaining the decline of the profit. 2all things are equal: The success of the centralization of the past does not guarantee the applicability in the future. 3either-or-or choice: The author assumes that the centralization and the establishment of field offices are mutually exclusive alternatives, there is no middle ground between they two. In fact, we can hav