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Which of the following most logically completes the argument

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Re: Which of the following most logically completes the argument [#permalink] New post 09 Jan 2012, 21:54
+1 for A
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Re: Which of the following most logically completes the argument [#permalink] New post 09 Jan 2012, 22:59
Its A
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Re: Which of the following most logically completes the argument [#permalink] New post 10 Jan 2014, 08:45
Lstadt wrote:
Doesn't make sense to go for A.

We already know that Winter Wheat yield is going to be lower this year. It is provided in the argument (Because of new government restrictions on the use of Davison River water for irrigation, per acre yields for winter wheat, though not for spring wheat, would be much lower than average.)

The premise tells us that Winter Wheat has a problem when given less water.

Answer C informs us that Sprint Wheat is well adapted to the soil = will have better yield?

Am I stretching it too much and bringing outside assumptions?
Let me try to explain this..
Cost Price of(Expense on) Winter Wheat to farmers(for seeds and all other ) = $100 for 1 kg
Profit Margin = 20%
Sales Price = 1 kg(Output Quantity) *100(CP) * 1.2 =$120
So, before the law on irrigation restrictions, Profit = 120(Revenue) - 100(Expense) = $20

Now, after CP(Cost Price) or Expense of Winter Wheat remains same = $100 for 1 kg
Profit Margin = 20% (Same)
But yield has decreased, for 1 kg sowed, I receive only 0.8 kg yield or Output quantity.
So, the Sales Price for this reduced quantity = 0.8 kg(Output Quantity) * 100(CP) * 1.2 = $96
So, after the law on irrigation restrictions, Profit = 96 (Revenue) - 100 (Expense) = -$4
So it is a net loss. Why? Because the profit margin of 20% is not good enough to cover up the expenses and loss of yield.

Since expenses are considered constant in the question, the question then focuses on loss of yield to blame this loss. This is what A covers up.
If you increase the yield or increase the profit margin, you will get more Profits. That is what A suggests.

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Re: Which of the following most logically completes the argument [#permalink] New post 11 Jan 2014, 06:13
Which of the following most logically completes the argument below?

Davison River farmers are currently deciding between planting winter wheat this fall or spring wheat next spring. Winter wheat and spring wheat are usually about equally profitable. Because of new government restrictions on the use of Davison River water for irrigation, per acre yields for winter wheat, though not for spring wheat, would be much lower than average. Therefore, planting spring wheat will be more profitable than planting winter wheat, since_______.

A. the smaller-than-average size of a winter wheat harvest this year would not be compensated for by higher winter wheat prices...[color=#00a651]MEANS LOW HARVEST WILL NOT ENSURE PROPORTIONALLY HIGH PROFIT DUE TO HIGHER PRICES..... HENCE PROFIT WILL BE LESS THAN SPRING WHEAT.....HENCE CORRECT
[/color]
B. new crops of spring wheat must be planted earlier than the time at which standing crops of winter wheat are ready to be harvested...SHOWS ONLY ONE CAN BE PLANTED.... BUT DOES NOT HINT TOWARDS WHICH ONE WOULD BE MORE PROFITABLE... HENCE INCORRECT.

C. the spring wheat that farmers in the Davison River region plant is well adapted to the soil of the region....ADAPTATION TO SOIL IS IRRELEVANT HERE.....MAY BE WINTER WHEAT IS EQUALLY OR MORE ADAPTABLE......

D. spring wheat has uses that are different from those of winter wheat......USE IS NOT IMPORTANT HERE....... PROFIT IS.... HENCE WRONG....

E. planting spring wheat is more profitable than planting certain other crops, such as rye......WHY COMPARE OTHER PLANTS?......WRONG
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Re: Which of the following most logically completes the argument [#permalink] New post 24 Jan 2014, 06:25
A it is. The "since____________" part is continuing a thought about which plant is more profitable. An explanation for such thought must follow. A fits the bill.
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Re: Which of the following most logically completes the argument   [#permalink] 24 Jan 2014, 06:25
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