Firm x, a leading manufacturer of rubber tires in country a, caters to almost one-third of the domestic tire market. the country was hit by a recession last year that caused the national output growth to be negative. simon reeds, the ceo of firm x, feels that these fluctuations in the business environment are short-lived and expects the economy to recover very soon. in spite of the recession, simon feels that the firm can actually invest in expanding its facilities as it has sufficient cash flows to continue its operation during the crisis period. the firm's marketing head, sandra jones, counters this by saying that the firm is already losing sales due to the recession and they should not increase costs further by making large-scale investments in the present climate.

which of the following, if true, would support the ceo's claim?

a. the government introduced a floor price in the market for natural rubber last year.
b. crude oil prices are increasing steadily.
c. some of firm x's competitors have slashed the prices of their products in an attempt to boost sales.
d. the tire industry reported good growth in profits until the recession began.
e. the government recently announced a plan to offer incentives to buyers in the car and household appliances market.