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But isn't the root cause for the concern, ROI on the cost, and less demand directly adderess the ROI concern
Bunuel
Bunuel
A local farmer is hoping to establish a certified organic farm but is concerned about the cost of setting it up. A certified organic farm requires far fewer supplies than a non-organic farm, and most of the supplies are less costly in comparison. Also, because an organic farm does not use expensive pesticides or tools, the cost of maintenance is also fairly low in comparison to the maintenance cost of a non-organic farm. But the set-up of the certified organic farm remains expensive, and the farmer is unsure if the return on his investment will justify the cost.

Which of the following statements best explains the farmer’s concern about the high cost of setting up a certified organic farm?

(A) There is little demand in the community for more certified organic food.

(B) More resources are required for establishing a certified organic farm than a non-organic farm.

(C) There are three other certified organic farms in the community that are much larger than the farm the farmer is planning to establish.

(D) The licensing fees for the farmer to acquire certification add considerably to the cost of set-up.

(E) The supplies needed to set up the certified organic farm are unique and must be special ordered.

OFFICIAL EXPLANATION



Overview:

Question asks the student to consider a passage about a local farmer’s interest in establishing a certified organic farm, and in particular the farmer’s concerns about the cost of set-up. Since the passage notes that the certified organic farm requires fewer and less expensive supplies than a non-organic farm, and that the maintenance cost is relatively low, the student is asked to select an answer choice that best explains the farmer’s concerns about cost. The correct answer choice will supply a clear explanation for where the cost is involved – some outside expense that is related directly to the set-up of the farm.

The Correct Answer:

D Answer choice (D) most clearly explains the reason for the farmer’s concerns about cost. Although the cost of supplies and maintenance might be lower than that of a non-organic farm, the cost of the certification itself is very high, creating a financial burden for the farmer as he tries to establish the certified organic farm. Answer choice (D) is correct.

The Incorrect Answers:

A, C Although the demand in the community for organic food, as well as the presence of three other large organic farms, might affect the farmer’s success in the long run, these factors do not affect the cost of set-up, about which the farmer is concerned. Answer choices (A) and (C) provide irrelevant information, so both are incorrect.

B Answer choice (B) clearly contradicts the statement made in the passage: “A certified organic farm requires far fewer supplies than a non-organic farm.” Therefore, answer choice (B) cannot be correct and should be eliminated immediately.

E The passage notes that the certified organic farm requires fewer supplies and that these supplies are less costly when compared to the supplies required on a non-organic farm. As a result, even if the supplies are unique and must be special-ordered – as answer choice (E) claims – they still should not contribute to the cost about which the farmer is concerned. Answer choice (E) is thus incorrect.
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