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#34994
Complete Question Explanation
(See the complete passage discussion here: lsat/viewtopic.php?t=14161)

The correct answer choice is (C)

When answering an open-ended Must Be True question without a textual referent, prephrasing the
correct answer choice is almost impossible. Instead, try to eliminate any answer choice that is not
addressed in the passage, and examine in detail any remaining contenders.

Answer choice (A): Although greater specialization of labor is clearly conducive to increasing
returns to scale (at least according to the Pin Factory model), we have no way of knowing if this is
the only way to achieve such returns.

Answer choice (B): The author does not fault all economic models for lacking in mathematical
rigor; only the Pin Factory model was not rigorous enough in the past (a shortcoming that has since
been corrected). Furthermore, no judgment is made as to whether economics fails in its quest to be a
scientific discipline.

Answer choice (C): This is the correct answer choice.According to the discussion in the fourth
paragraph, the Pin Factory model failed to gain prominence among economists not because of
ideology (line 39), but because of their own scientific aspirations.

Answer choice (D): This is the Opposite answer. The Pin Factory model assumes increasing returns
to scale, which creates a natural tendency toward monopoly (lines 25-26).

Answer choice (E): While it is likely that Adam Smith did not recognize the tension between the Pin
Factory and the Invisible Hand models, this observation is pure speculation that cannot be proven by
reference to the information contained in the passage.

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