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A company that disposes of industrial waste employs dozens of people i

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A company that disposes of industrial waste employs dozens of people i  [#permalink]

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New post 08 May 2017, 11:37
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  25% (medium)

Question Stats:

85% (01:59) correct 15% (02:18) wrong based on 118 sessions

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A company that disposes of industrial waste employs dozens of people in jobs that are considered quite hazardous. The company obeys federal regulations governing workplace safety, and to comply with new regulations instituted to avoid recently discovered risks from airborne particulate matter, company engineers were required to install extremely expensive air-filtering equipment. However, despite the expense of the air-filtering equipment, the company’s operating costs for the quarter were considerably lower than normal.

Which of the following, if true, most helps to resolve the apparent paradox?

A. More than half the company’s expenditures to maintain worker safety go to pay for protective garments, yet only a small percentage of such expenditures go to pay for nose and mouth filters.
B. Expensive shutdowns to prevent contamination that were periodically required prior to the installation of the air-filtering equipment are no longer necessary.
C. The company’s costs of labor, which make up a large fraction of operating costs, increased during the same period.
D. When the air-filtering equipment was installed in the waste disposal facility, the company took the opportunity to upgrade the temperature control equipment.
E. The majority of the company’s employees work in the areas of the plant in which the air-filtering equipment was installed.

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Re: A company that disposes of industrial waste employs dozens of people i  [#permalink]

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New post 08 May 2017, 18:04
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Simplify the argument --

1. to comply with new regulations, company engineers were required to install extremely expensive air-filtering equipment
2. the company’s operating costs for the quarter were considerably lower than normal

We have been asked to explain #2 -- a surprising result -- when #1 has occurred.

Option A - Incorrect

the data here does not explain #2 because we are told that only a small percentage of costs go to pay for nose and mouth filters (which presumably are now replaced by the air filtering equipment)

Option B - Correct Answer

Explains #2 -- even though the installation cost is high, it has reduced other operating costs, by preventing expensive shutdowns that were periodically required.

Option C - Incorrect

Worsens the paradox -- goes against point #2

Option D - Incorrect

More costs -- goes against point #2

Option E - Incorrect

Does not tell us why #2 should be true at all
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Re: A company that disposes of industrial waste employs dozens of people i &nbs [#permalink] 08 May 2017, 18:04
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