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# Among the myths taken as fact by the environmental managers

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Senior Manager
Joined: 31 Oct 2011
Posts: 325
Among the myths taken as fact by the environmental managers [#permalink]

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09 May 2012, 13:27
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Question 1
00:00

Question Stats:

64% (02:54) correct 36% (01:41) wrong based on 138

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Question 2
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Question Stats:

66% (01:55) correct 34% (01:00) wrong based on 137

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Question 3
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65% (01:44) correct 35% (01:05) wrong based on 124

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Question 4
00:00

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70% (01:40) correct 30% (01:02) wrong based on 128

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Among the myths taken as fact by the environmental managers of most corporations is the Line belief that environmental regulations affect all competitors in a given industry uniformly. In reality, regulatory costs—and therefore compliance—fall unevenly, economically disadvantaging some companies and benefiting others. For example, a plant situated near a number of larger non-compliant competitors is less likely to attract the attention of local regulators than is an isolated plant, and less attention means lower costs. Additionally, large plants can spread compliance costs such as waste treatment across a larger revenue base; on the other hand, some smaller plants may not even be subject to certain provisions such as permit or reporting requirements by virtue of their size. Finally, older production technologies often continue to generate toxic wastes that were not regulated when the technology was first adopted. New regulations have imposed extensive compliance costs on companies still using older industrial coal-fired burners that generate high sulfur dioxide and nitrogen oxide outputs, for example, whereas new facilities generally avoid processes that would create such waste products. By realizing that they have discretion and that not all industries are affected equally by environmental regulation, environmental managers can help their companies to achieve a competitive edge by anticipating regulatory pressure and exploring all possibilities for addressing how changing regulations will affect their companies specifically.
It can be inferred from the passage that a large plant might have to spend more than a similar but smaller plant on environmental compliance because the larger plant is
(A) more likely to attract attention from local regulators
(B) less likely to be exempt from permit and reporting requirements
(C) less likely to have regulatory costs passed on to it by companies that supply its raw materials
(D) more likely to employ older production technologies
(E) more likely to generate wastes that are more environmentally damaging than those generated by smaller plants

[Reveal] Spoiler:
B

According to the passage, which of the following statements about sulfur dioxide and nitrogen oxide outputs is true?
(A) Older production technologies cannot be adapted so as to reduce production of these outputs as waste products.
(B) Under the most recent environmental regulations, industrial plants are no longer permitted to produce these outputs.
(C) Although these outputs are environmentally hazardous, some plants still generate them as waste products despite the high compliance cost they impose.
(D) Many older plants have developed innovative technological processes that reduce the amounts of these outputs generated as waste products.
(E) Since the production processes that generate these outputs are less costly than alternative processes, these less expensive processes are sometimes adopted despite their acknowledged environmental hazards.

[Reveal] Spoiler:
C

Which of the following best describes the relationship of the statement about large plants (lines 18-26) to the passage as a whole?
(A) It presents a hypothesis that is disproved later in the passage.
(B) It highlights an opposition between two ideas mentioned in the passage.
(C) It provides examples to support a claim made earlier in the passage.
(D) It exemplifies a misconception mentioned earlier in the passage.
(E) It draws an analogy between two situations described in the passage.

[Reveal] Spoiler:
C

The primary purpose of the passage is to
(B) illustrate varying levels of compliance with environmental regulation among different corporations
(C) describe the various alternatives to traditional methods of environmental management
(D) advocate increased corporate compliance with environmental regulation
(E) correct a common misconception about the impact of environmental regulations

[Reveal] Spoiler:
E

[Reveal] Spoiler: Question #1 OA
[Reveal] Spoiler: Question #2 OA
[Reveal] Spoiler: Question #3 OA
[Reveal] Spoiler: Question #4 OA

Last edited by bb on 30 Jan 2017, 23:34, edited 1 time in total.
Updated Topic and OAs
Senior Manager
Joined: 31 Oct 2011
Posts: 325
Re: Among the myths taken as fact by the environmental managers [#permalink]

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09 May 2012, 13:40
I initially picked B, but after reading the passage again, changed my mind into A.
My reasoning is like this.
If older production technologies can be adapted to reduce production of sulfur dioxide, who doesn't modify thier production when there is a regulation that imposes extensive compliance costs on companies that generate sulfur dioxide? In other words, the regulation affects older productions and new production evenly because older production can modify their production. However, since older production cannot be adapted to reduce production of sulfur dioxide, the older production is disadvenataged by the regulation just as the passage explained.

To be sure, I looked up this question and found a lot of people insist the answer for this Q is C.
I can see why those people picked C.

I'd like to hear people's opinions on this issue.
Manager
Joined: 21 Aug 2012
Posts: 199
Concentration: General Management, Operations
Schools: HBS '19 (S)
GMAT 1: 740 Q49 V42
Re: Among the myths taken as fact by the environmental managers [#permalink]

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30 Jan 2013, 07:21
same here ... i went for A ... I know even C is right ... but why is A wrong??
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Joined: 09 Jun 2010
Posts: 1414
Re: Among the myths taken as fact by the environmental managers [#permalink]

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30 Jan 2013, 21:36
very easy passage but the question is hard.

A
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Joined: 12 Jul 2013
Posts: 12
Concentration: Economics, Finance
GMAT 1: 700 Q50 V34
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Re: Among the myths taken as fact by the environmental managers [#permalink]

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28 Dec 2013, 20:41
This is a passage from OG 13. Everyone can check the page 388. OA here is C. The passage only mentions that new regulations have imposed extensive compliance costs and that old burners still generate SO2 and NO, this is the idea of C. We can find in nowhere whether these burners can be adapted to meet the new requirements. Hence, A is out.
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Re: Among the myths taken as fact by the environmental managers   [#permalink] 28 Dec 2013, 20:41
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