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If the second scenario reflects the facts the firms

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Unformatted text preview: ilities, the assumption in question need not be accepted. Even if it is granted that radio advertising is responsible for the Cumquat’s success, another assumption must be made before we can conclude that radio advertising will result in increased profits for businesses in general. We must also assume that what is true of the Cumquat will likewise be true of most other businesses. But there are all kinds of important differences between cafes and other businesses that could affect how radio audiences react to their advertising. We cannot safely assume that because a small restaurant has benefited from radio advertising, any and all local businesses will similarly benefit. In conclusion, it would be imprudent for a business to invest in radio advertising solely on the basis of the evidence presented. To strengthen the conclusion, it must be established that radio advertising was the principal cause of increased business at the Cumquat. Once this is shown, it must be determined that the business in question is sufficiently like the Cumquat, and so can expect si...
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