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Scientists have modified feed corn genetically, increasing

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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 09 Dec 2012, 02:18
Good Question !

In the past, farmers used ordinary seeds in their farms, along with the insecticide to protect it from insects.
Now, last year few farmers used genetically modified insect resistant seeds, which are costlier than ordinary seeds. As seeds are already insect resistant, it require lesser or no amount of insecticide, lowering the cost on insecticides. Still, few farmers used insecticides.
Conclusion=> The above change is unlikely to increase profit.

Analysis:
In general, Profit= Sale- Cost.
As argument doesn't mention about sale, assuming its constant. So, profit in inversely proportional to cost. If cost is incresed, profit would decrease.
Old cost =cost(ordinary Seeds) + cost(insecticide)
New cost=cost(Genetically modified seeds) + cost(insecticide)


As in second case, genetically modified seeds are costlier, extra spending done on costlier seeds needs to be compensated by reducing the cost on insecticide.

For example,
Old cost = 10K(seeds) + 2 K( insecticide)
New cost= 11K (genetic seeds) + Cost of insecticide.


In second case, Farmers' spending of insecticide should be less than 1K for profitable business.

(A) Whether there are insect pests that sometimes reduce feed-corn yields, but against which commonly used insecticides and the genetic modification are equally ineffective. Contradicts the premise itself saying insecticides and modified seeds are ineffective.
(B) Whether the price that farmers receive for feed corn has remained steady over the past few years. price of corn is out of context.
(C) Whether the insecticides typically used on feed corn tend to be more expensive than insecticides typically used on other crops. Concern is about amount of insecticide, and not cost of insecticide
(D) Whether most of the farmers who tried the genetically modified ed corn last season applied more insecticide than was actually necessary. Correct, As genetically modified seeds are already insect resistant, more usage of insecticide will reduce the profit.
(E) Whether, for most farmers who plant feed corn, it is their most profitable crop. Its obvious truth that corns are profitable. This doesn't touch the premises itself.
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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 18 Dec 2012, 18:26
umeshpatil wrote:
Good Question !

In the past, farmers used ordinary seeds in their farms, along with the insecticide to protect it from insects.
Now, last year few farmers used genetically modified insect resistant seeds, which are costlier than ordinary seeds. As seeds are already insect resistant, it require lesser or no amount of insecticide, lowering the cost on insecticides. Still, few farmers used insecticides.
Conclusion=> The above change is unlikely to increase profit.

Analysis:
In general, Profit= Sale- Cost.
As argument doesn't mention about sale, assuming its constant. So, profit in inversely proportional to cost. If cost is incresed, profit would decrease.
Old cost =cost(ordinary Seeds) + cost(insecticide)
New cost=cost(Genetically modified seeds) + cost(insecticide)


As in second case, genetically modified seeds are costlier, extra spending done on costlier seeds needs to be compensated by reducing the cost on insecticide.

For example,
Old cost = 10K(seeds) + 2 K( insecticide)
New cost= 11K (genetic seeds) + Cost of insecticide.


In second case, Farmers' spending of insecticide should be less than 1K for profitable business.

(A) Whether there are insect pests that sometimes reduce feed-corn yields, but against which commonly used insecticides and the genetic modification are equally ineffective. Contradicts the premise itself saying insecticides and modified seeds are ineffective.
(B) Whether the price that farmers receive for feed corn has remained steady over the past few years. price of corn is out of context.
(C) Whether the insecticides typically used on feed corn tend to be more expensive than insecticides typically used on other crops. Concern is about amount of insecticide, and not cost of insecticide
(D) Whether most of the farmers who tried the genetically modified ed corn last season applied more insecticide than was actually necessary. Correct, As genetically modified seeds are already insect resistant, more usage of insecticide will reduce the profit.
(E) Whether, for most farmers who plant feed corn, it is their most profitable crop. Its obvious truth that corns are profitable. This doesn't touch the premises itself.


Excellent post! Here is my thinking:

Profit = Revenue - Cost

So if the new seed is used, how much less insecticide can the farmer use to offset the marginal cost of the modified seed?

If the farmer can eliminate the cost of insecticide, perhaps the marginal cost of the seed will be offset by the savings from less pesticide use, resulting in less overall cost and greater profit.

Bottom line-what is the least amount of pesticide that the farmer can use?
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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 26 Feb 2014, 19:20
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Scientists have modified feed corn genetically, increasing [#permalink] New post 12 Jul 2014, 02:22
D stands out. But even D seems to have a few flaws.

The cost of the genetically modified seeds is high so if they use insecticides there will be a loss. - strengthens the arg
If they do not use insecticides how can it be deemed a profit ? (the cost of the seeds is HIGH ) - how does this weaken the arg to effectively be the right answer?

Can someone plz help ?
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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 13 Jul 2014, 21:11
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janxavier wrote:
D stands out. But even D seems to have a few flaws.

The cost of the genetically modified seeds is high so if they use insecticides there will be a loss. - strengthens the arg
If they do not use insecticides how can it be deemed a profit ? (the cost of the seeds is HIGH ) - how does this weaken the arg to effectively be the right answer?

Can someone plz help ?


Responding to a pm:

Premises:
Farmers who tried out the genetically modified corn last season applied less insecticide to their corn fields.
Farmers still got yields comparable to those they would have gotten with ordinary corn.
Genetically modified corn seed is more expensive and money saved on insecticide rarely exceeded their extra costs for seed.

Conclusion:
For most feed-corn farmers, switching to genetically modified seed would be unlikely to increase profits.

Based on previous year's experience, the author is concluding what will happen this year - profits will not increase if farmers use genetically modified seeds.

(B) Whether the price that farmers receive for feed corn has remained steady over the past few years
This information does not affect our this year's profit. If price has remained steady, it doesn't mean it will remain steady this year too.
So whether this year profit will increase or decrease or stay the same, we don't know.

(D) Whether most of the farmers who tried the genetically modified corn last season applied more insecticide than was actually necessary.
This question when answered will tell us whether we can decrease the amount of insecticide used this year. If last year farmers had used more insecticide than was required, perhaps we can decrease it this year without affecting the yield. If we decrease the amount of insecticide, we might decrease costs such that using modified crop seeds might lower our total costs this year. This will affect our profit this year.

Hence (D) is correct.
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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 30 Aug 2014, 22:20
Hi e-gmat,

Just want to confirm my reasoning.

I don't have doubt why the answer is (D). I just want to confirm that the GAP identified by me was correct or not?

Premise: SC have made GMFC(genetically modified feed corn)
Premise: Farmers tried out and applied less insecticide on GMFC
Premise: The yields for GMFC and OFC(ordinary) were same.
Premise: The overall costs for OFC were less than those for GMFC.
Conclusion: Switching from OFC to GMFC is unlikely to increase profits.

GAP:

(1). The yield of GMFC is not valued more than that of OFC since GMFC uses less insecticide and the customers who buy yields value more for the yield that uses less insecticide.
Assumption: Hence, the price of yield of GMFC is not significantly more than that of yield of OFC.

Please confirm!
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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 02 Jan 2015, 07:01
In the question.it says "Farmers who tried out the genetically modified corn last season applied less insecticide to their ..."
Here it clearly says the farmers used less insecticide...
Why option D is right ?

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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 04 Jan 2015, 21:46
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Kumarsaravana wrote:
In the question.it says "Farmers who tried out the genetically modified corn last season applied less insecticide to their ..."
Here it clearly says the farmers used less insecticide...
Why option D is right ?

Posted from my mobile device Image


You have to read the question very carefully:

"Farmers who tried out the genetically modified corn last season applied less insecticide to their corn fi elds and still got yields comparable to those they would have gotten with ordinary corn."
The argument says that farmers using modified corn applied less insecticide than the farmers using ordinary corn.

(D) Whether most of the farmers who tried the genetically modified corn last season applied more insecticide than was actually necessary
On the other hand, option (D) says that we need to evaluate whether the farmers who used modified corn applied more insecticide than was necessary i.e. whether even less insecticide was needed.

The comparison is with different things. Does it make sense now?
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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 25 Jan 2015, 17:10
Hi Meghna,


Please help me by resolving the conflict in my assumption in this question-

Profit depends on cost and selling price. Here the author is saying that the switching would unlikely increase profit. Hence the assumption could be that the selling price of both genetically modified feed corn and ordinary corn is same. Hence the answer can be (B).

However, I don't challenge GMAT :). But I am not able to establish linkages between premises to come up with an assumption to arrive at (D) in e-gmat way. Because the premise clearly says that savings in using less insecticide cannnot offset the cost of seed. So even if we use even less insecticide its not going to make too much difference. Plus how can we challenge/change premise.

Can you please guide.

Thanks,
Pritisha
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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 26 Jan 2015, 02:31
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MarketingGuru wrote:
Hi Meghna,


Please help me by resolving the conflict in my assumption in this question-

Profit depends on cost and selling price. Here the author is saying that the switching would unlikely increase profit. Hence the assumption could be that the selling price of both genetically modified feed corn and ordinary corn is same. Hence the answer can be (B).

However, I don't challenge GMAT :). But I am not able to establish linkages between premises to come up with an assumption to arrive at (D) in e-gmat way. Because the premise clearly says that savings in using less insecticide cannnot offset the cost of seed. So even if we use even less insecticide its not going to make too much difference. Plus how can we challenge/change premise.

Can you please guide.

Thanks,
Pritisha


For (B) vs (D), check this link: scientists-have-modified-feed-corn-genetically-increasing-94161-20.html#p1382766

Ask if anything remains unclear.
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Scientists have modified feed corn genetically, increasing [#permalink] New post 06 Apr 2015, 00:19
VeritasPrepKarishma wrote:
MarketingGuru wrote:
Hi Meghna,


Please help me by resolving the conflict in my assumption in this question-

Profit depends on cost and selling price. Here the author is saying that the switching would unlikely increase profit. Hence the assumption could be that the selling price of both genetically modified feed corn and ordinary corn is same. Hence the answer can be (B).

However, I don't challenge GMAT :). But I am not able to establish linkages between premises to come up with an assumption to arrive at (D) in e-gmat way. Because the premise clearly says that savings in using less insecticide cannnot offset the cost of seed. So even if we use even less insecticide its not going to make too much difference. Plus how can we challenge/change premise.

Can you please guide.

Thanks,
Pritisha


For (B) vs (D), check this link: scientists-have-modified-feed-corn-genetically-increasing-94161-20.html#p1382766

Ask if anything remains unclear.



Hi Karishma,
If option B was something like:
Whether the price that farmers receive for feed corn would fluctuate in future.

Will it be a contender then?

Regards,
SR
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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 06 Apr 2015, 19:24
Expert's post
solitaryreaper wrote:
VeritasPrepKarishma wrote:
MarketingGuru wrote:
Hi Meghna,


Please help me by resolving the conflict in my assumption in this question-

Profit depends on cost and selling price. Here the author is saying that the switching would unlikely increase profit. Hence the assumption could be that the selling price of both genetically modified feed corn and ordinary corn is same. Hence the answer can be (B).

However, I don't challenge GMAT :). But I am not able to establish linkages between premises to come up with an assumption to arrive at (D) in e-gmat way. Because the premise clearly says that savings in using less insecticide cannnot offset the cost of seed. So even if we use even less insecticide its not going to make too much difference. Plus how can we challenge/change premise.

Can you please guide.

Thanks,
Pritisha


For (B) vs (D), check this link: scientists-have-modified-feed-corn-genetically-increasing-94161-20.html#p1382766

Ask if anything remains unclear.



Hi Karishma,
If option B was something like:
Whether the price that farmers receive for feed corn would fluctuate in future.

Will it be a contender then?

Regards,
SR


No, it wouldn't be. The price farmers receive for feed corn is the same - whether they use genetically modified seeds or ordinary seeds. What we need to figure out is whether the profits will increase if they switched to genetically modified seeds i.e. if one farmer uses ordinary seeds this year and another uses genetically modified seeds this year, whose profit will be higher? Since revenue earned by both will the same, the question is which farmer's cost will be lower?
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Scientists have modified feed corn genetically, increasing [#permalink] New post 10 Apr 2015, 09:28
Quote:

No, it wouldn't be. The price farmers receive for feed corn is the same - whether they use genetically modified seeds or ordinary seeds. What we need to figure out is whether the profits will increase if they switched to genetically modified seeds i.e. if one farmer uses ordinary seeds this year and another uses genetically modified seeds this year, whose profit will be higher? Since revenue earned by both will the same, the question is which farmer's cost will be lower?



Thanks Karishma !!
Now I got it.It's true that Selling price is not a concern here. It will be same for corn grown through modified seeds or through ordinary seeds.
The concern is how the profits would be impacted - something that is directly related to the cost incurred in the growth of corn.

Regards,
SR
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Re: Scientists have modified feed corn genetically, increasing [#permalink] New post 21 Apr 2015, 04:58
gmatpunjabi - Could you please help us know the answer you found for the question shrive555 asked? I also have the same question actually.
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Re: Scientists have modified feed corn genetically, increasing   [#permalink] 21 Apr 2015, 04:58

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