The correct answer is: Only I and II are implicit.
The statement says that the company has decided to increase the price of its product in order to reduce the gap between income and expenditure. This implies that the company’s income is currently less than its expenditure. The company expects that increasing the price of its product will increase its income and reduce the gap between income and expenditure.
Assumption I: The rate will remain more or less same after the increase.
This assumption is implicit because the statement does not say anything about the rate. The company may expect that the rate will remain the same after the increase, but this is not certain. If the rate does not remain the same, the company’s income may not increase as much as it expects.
Assumption II: The expenditure will more or less remain the same in near future.
This assumption is also implicit because the statement does not say anything about the expenditure. The company may expect that the expenditure will remain the same in the near future, but this is not certain. If the expenditure increases, the company’s income may not be enough to cover the expenditure and the gap between income and expenditure may not reduce.
Assumption III: The rival companies will also increase the price of the similar product.
This assumption is not implicit because the statement does not say anything about the rival companies. The company may expect that the rival companies will also increase the price of their products, but this is not certain. If the rival companies do not increase the price of their products, the company’s product may become less competitive and the company’s income may not increase as much as it expects.
Therefore, only assumptions I and II are implicit.