Discussion
Assertion: the defender's market value should be treated as an investment in keeping it. Reason: retaining the asset forgoes the proceeds a sale would bring.
Answer: A
Correct answer: both the assertion and the reason are true and the reason explains the assertion
Both are true and the reason gives the mechanism. Keeping the asset means declining the cash a sale would produce, and forgoing money one could have is economically the same as spending it. Treating the market value as the defender’s investment is what makes the comparison with the challenger a fair one.
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