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555-605 (Medium)|   Business|   Short Passage|                                    
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source: OG13

Q53. 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.

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 costs 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.


text from passage
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.

So they regulations are in general and they are applicable to violators.

But option C says that

Although these outputs are environmentally hazardous, some plants still generate them as waste products despite the high compliance costs they impose.

but there is nowhere written that Some plants still do it or whether companies stopped doing so after the regulations are imposed.

So how can C be correct choice.
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Nevernevergiveup
source: OG13

Q53. Among the myths taken as fact by the environmental managers of most corporations is the 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.

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 costs 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.


text from passage
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.

So they regulations are in general and they are applicable to violators.

But option C says that

Although these outputs are environmentally hazardous, some plants still generate them as waste products despite the high compliance costs they impose.

but there is nowhere written that Some plants still do it or whether companies stopped doing so after the regulations are imposed.

So how can C be correct choice.
Dear Nevernevergiveup,

I'm happy to respond. Here's the relevant part of the passage:
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.

First of all, the first sentence quoted here is a general-point sentence, and the sentence that follows it is an example sentence. Even if the second sentence were not clear, we would expect it to be about older companies "still continuing" to do something that is now regulated.

In fact, the second sentence is crystal clear. The use of the present participle "using" implies present action, and the adverb "still" reinforces this interpretation. The fact that the paragraph talks about "companies still using older industrial coal-fired burners that generate high sulfur dioxide and nitrogen oxide outputs" means, of course, that right now there are "companies" that "still use older industrial coal-fired burners that generate high sulfur dioxide and nitrogen oxide outputs." This is stated clearly and unambiguously.

Therefore (C) is absolutely undeniable as the OA.

Does this make sense?
Mike :-)
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Hi mikemcgarry or other experts,
I was confused with choice D in Question 54
54. 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.

IMO , "addition", the first word in paragraph 2, implies same level as the content preceding "addition".
here is an example which proves the main idea, so I view the comparison of larger company and smaller as an example to prove the main idea.


Please point out my faults.

Thanks in advance

have a nice day
>_~
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52. 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


Remember that inference on the GMAT RC (and on CR) means that something is not directly stated but that it's absolutely undeniable, based on what is explicitly stated. See:
Inference on GMAT Reading Comprehension

For Q52, this is the crucial sentence from the prompt:
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.

If smaller companies, by virtue of their small size, are exempt from permit or reporting requirements, then it must be true that large companies would be subject to these requirements. Answer = (B)

Does all this make sense?
Mike :-)
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Hi, I chose A as the answer for question 4 but got it wrong.

My thought process was that the misconception among the env.managers is definitely a problem. The author goes on to explain how is the misconception a problem and from the last sentence of the passage, the author surely provides a possible solution.

However, I feel E is narrowed because though the author is trying to correct the misconception, this option does not consider a possible solution which the author has stated in the last line of the passage.

Please explain why is my thought process wrong.
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Hi, I chose A as the answer for question 4 but got it wrong.

My thought process was that the misconception among the env.managers is definitely a problem. The author goes on to explain how is the misconception a problem and from the last sentence of the passage, the author surely provides a possible solution.

However, I feel E is narrowed because though the author is trying to correct the misconception, this option does not consider a possible solution which the author has stated in the last line of the passage.

Please explain why is my thought process wrong.
Sure, you could say that the misconception is a problem, but does the author suggest possible solutions? In the last sentence, the author basically says that environmental managers CAN help their companies by avoiding that misconception, but does that really solve the misconception problem? Even if it does, the author certainly does not present multiple possible solutions to correct the misconception.

Instead, the author simply describes the misconception and attempts to correct that misconception. This is captured perfectly by choice (E).

In other words, the author is not presenting possible solutions for correcting the misconception. Instead, the author corrects the misconception in the passage, and then explains why environmental managers should adopt this corrected view to help their companies.

(E) is the best answer.
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GMATNinja
As per your explanations if the option a was mentioned as below then would it be a correct answer choice:
address a widespread environmental management problem and suggest a possible solution.

What i comprehend from your earlier explanations is that since the author is not providing a number of possible solutions. Hence the option a is wrong.

Pl correct me.
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hassu13
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As per your explanations if the option a was mentioned as below then would it be a correct answer choice:
address a widespread environmental management problem and suggest a possible solution.

What i comprehend from your earlier explanations is that since the author is not providing a number of possible solutions. Hence the option a is wrong.

Pl correct me.
Not quite... as described in my earlier post, the author is not primarily interested in solving a widespread environmental management problem. Instead, the author is primarily concerned with describing and correcting a common misconception (choice E).

Sure, the author says that environmental managers can better help their companies if they avoid this misconception... but is that really a solution to the management problem? Telling someone to avoid a certain problem isn't really solving the problem. The author tells the environmental managers that they should avoid the problem, but the author does NOT discuss how to avoid the problem.

(E) is still the best answer.
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Official Explnanation



Q1. 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
Inference
This item depends on understanding the implications of the passage’s discussion of differences between large and small plants. It asks what might be true of a larger plant that would compel it to spend more than a smaller plant on environmental compliance. The passage addresses this issue by stating that smaller plants are often not subject to the same permit or reporting requirements that larger plants are.
A. The likelihood of attracting regulatory attention is discussed only in the context of comparing plants that are isolated with small plants that are near large noncompliant ones. The passage does not suggest that size is generally the crucial determining factor in attracting regulatory attention.
B. Correct. According to the passage, certain permit or reporting requirements may not apply to smaller plants; this suggests that larger plants are less likely than smaller plants to be exempt from these requirements, and thus that the larger plants would have to spend more to comply.
C. The passage does not discuss the passing on of regulatory costs from suppliers to plants.
D. The passage does not suggest that larger plants are any more likely than smaller plants to employ older production technologies.
E. The passage does not distinguish between the types of wastes emitted by larger plants and those emitted by smaller plants.
The correct answer is B.

Q2. 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 costs 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.
Supporting idea
This item depends on identifying what the passage states explicitly about outputs of sulfur dioxide and nitrogen oxide. The passage says that plants that produce these outputs are those that use older industrial coal-fired burners, and that such plants are subject to extensive compliance costs imposed by new regulations.
A. The passage does not address the question of whether older production technologies might be adapted to reduce outputs of sulfur dioxide and nitrogen oxide.
B. The passage states that new regulations have imposed high compliance costs on companies that produce sulfur dioxide and nitrogen oxide outputs, not that these outputs are prohibited.
C. Correct. The passage states that some companies are still using the older kinds of burners that generate sulfur dioxide and nitrogen oxide outputs, and that new regulations have imposed high compliance costs on these companies.
D. The passage does not address the question of whether older plants have developed new processes to reduce the amounts of sulfur dioxide and nitrogen oxide they produce.
E. Sulfur dioxide and nitrogen oxide outputs, the passage suggests, are produced only by older industrial coal-fired burners; newer facilities (using alternative processes) do not employ this technology, the expense of which is not mentioned in the passage.
The correct answer is C.

Q3. Which of the following best describes the relationship of the statement about large plants (lines 12–17) 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.
Evaluation
This question asks about the role played in the passage by the following statement: 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. This statement describes situations in which compliance costs for plants of different sizes may differ, which serve as evidence in support of the passage’s main claim: that environmental regulations do not affect all competitors in a given industry uniformly.
A. The statement in question is not a hypothesis; rather, it reports factors that are known to affect the varying impact of environmental regulations.
B. This is too vague to be a good description of the kind of relationship the question asks about. The highlighted statement does present a contrast—it suggests that larger plants’ compliance costs are lower under some circumstances, while smaller plants’ compliance costs are lower under other circumstances. But this purports to state two facts rather than mere ideas; they are contrasting facts but not in any meaningful sense opposed, since they can easily coexist.
C. Correct. The statement provides examples to support the initial claim made in the passage that regulatory costs fall unevenly on competitors in an industry: large plants can spread compliance costs around, and smaller plants may not even have to pay certain costs.
D. This statement helps to dispel, not exemplify, a misconception mentioned earlier in the passage—i.e., the myth that environmental regulations affect all companies in an industry the same way.
E. The statement does not suggest that the situation of larger and smaller plants is similar (or analogous) to any other situation mentioned in the passage.
The correct answer is C.

Q4. The primary purpose of the passage is to
A. address a widespread environmental management problem and suggest possible solutions
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
Main idea
This question depends on understanding the passage as a whole. Its first sentence indicates its main purpose: to dispel a myth about environmental regulations that is often taken as fact.
A. The passage is not about the management of any environmental problem, which would be a problem about how to prevent or undo damage to the environment. The passage primarily aims to dispel a belief that the passage says is widely held by environmental managers.
B. The passage refers to variations in firms’ levels of compliance with environmental regulations, but its primary purpose is not to illustrate those varying levels, nor does it do so.
C. The passage suggests that most environmental managers are mistaken about a key concept; its primary purpose is not to describe traditional methods of environmental management or alternatives to those traditional methods, nor does it do so.
D. The passage takes no position on whether companies should increase their compliance with environmental regulation.
E. Correct. The passage primarily aims to dispel the belief that environmental regulations affect all companies in an industry uniformly.
The correct answer is E.
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Hi GMATNinja,

Could you please help me with question no 2?

2. 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.

The passage says, "Finally, older production technologies often continue to generate toxic wastes that were not regulated when the technology was first adopted."

I think I misread the word "adapted" for "adopted" while reading option (A) Older production technologies cannot be adapted so as to reduce production of these outputs as waste products.
What happens when older production technologies are adapted is clearly not discussed in the passage.
However, if option A were to have the word "adopted" instead of "adapted" option A could be true. Wouldn't you say?

Thank you,
Dablu
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gurudabl
Hi GMATNinja,

Could you please help me with question no 2?

2. 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.

The passage says, "Finally, older production technologies often continue to generate toxic wastes that were not regulated when the technology was first adopted."

I think I misread the word "adapted" for "adopted" while reading option (A) Older production technologies cannot be adapted so as to reduce production of these outputs as waste products.
What happens when older production technologies are adapted is clearly not discussed in the passage.
However, if option A were to have the word "adopted" instead of "adapted" option A could be true. Wouldn't you say?

Thank you,
Dablu
Yes, changing the word "adapted" to "adopted" changes the meaning of (A) entirely. It's not so important to determine whether (A) would have been true with different wording -- instead, it is more useful to focus on reading answer choices accurately in the first place.

I hope that helps!
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VeritasKarishma
GMATNinja mikemcgarry
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.

will you explain ( therefore compliance )in this compliance refers to just compliance or compliance costs.
also explain (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.) how noncompliant competitors is less likely to attract attention of local regulators.basically noncompliant means failing to act according their command.
i'm not getting how they are not getting attracted local regulators.

Also Why option A of first question is wrong according to above fact?
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VeritasKarishma
GMATNinja mikemcgarry
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.

will you explain ( therefore compliance )in this compliance refers to just compliance or compliance costs.
also explain (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.) how noncompliant competitors is less likely to attract attention of local regulators.basically noncompliant means failing to act according their command.
i'm not getting how they are not getting attracted local regulators.

Also Why option A of first question is wrong according to above fact?
First, let’s deal with the two sentences you mention in the passage, then we’ll consider question 1. Here’s the first sentence:

    "In reality, regulatory costs—and therefore compliance—fall unevenly, economically disadvantaging some companies and benefiting others."

Whether “and therefore compliance” refers to compliance itself or compliance costs is somewhat ambiguous, but more importantly, this distinction is not necessary to understand the passage, or even that sentence, as a whole. Either way, the author’s point is that the burden to comply with regulations unduly falls on some companies at the expense of others.

And here’s the second sentence:

    "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."

Here, the author is stating NOT that non-compliant compliant competitors are less likely to attract the attention of local regulators, BUT that a plant situated near non-compliant competitors is less likely to attract regulators’ attention.

Question 1 says:

Quote:
1. 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

And here’s (A):
Quote:
(A) more likely to attract attention from local regulators
The second sentence we considered above does not suggest that a given larger plant is more likely to attract attention from local regulators than a comparable smaller plant. Instead, it compares attention drawn by a plant among larger non-compliant competitors with that drawn by an isolated plant. On the other hand, the question simply compares a large plant to a small plant. It doesn’t provide us with any information of what’s situated in the vicinity of those two plants. Eliminate (A) for question 1.

I hope that helps!
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Hello, GMATNinja and AndrewN - can any of you Gentleman please explain QN - 591 - The Primary Purpose of the passage Question.

I choose (A) - address the widespread environmental management problem and suggest a possible solution

My analogy was that the Misconception is the management problem as it is taken as a fact by the managers and the solutions are outlined in the last 5-6 lines - "By realizing that they have discretion and that not all ...."

I did not choose (E) - the correct answer because I thought it's a trap mimicking the same words from the passage, I was triggered by wording Misconception about "the impact of environmental regulations" - wherein the passage it talks about impacts of regs? I am thinking more so that the passage talks about the implications of the regulations, not how they impact companies, maybe I am missing something.

Please help!
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IN2MBB2PE
Hello, GMATNinja and AndrewN - can any of you Gentleman please explain QN - 591 - The Primary Purpose of the passage Question.

I choose (A) - address the widespread environmental management problem and suggest a possible solution

My analogy was that the Misconception is the management problem as it is taken as a fact by the managers and the solutions are outlined in the last 5-6 lines - "By realizing that they have discretion and that not all ...."

I did not choose (E) - the correct answer because I thought it's a trap mimicking the same words from the passage, I was triggered by wording Misconception about "the impact of environmental regulations" - wherein the passage it talks about impacts of regs? I am thinking more so that the passage talks about the implications of the regulations, not how they impact companies, maybe I am missing something.

Please help!
Hello, IN2MBB2PE. I feel obliged to point out that GMATNinja has posted on the question, specifically answer choices (A) and (E), earlier the thread, in this post. For my part, I think the bookends of the passage align quite well with (E). Compare:

Quote:
QUESTION: 4. The primary purpose of the passage is to

(E) correct a common misconception about the impact of environmental regulations

PASSAGE: Among the myths taken as fact by the environmental managers of most corporations is the 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...

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.
As for (A), I have to agree with GMATNinja that the author never suggests possible solutions to the widespread environmental management problem. A solution is a more definitive answer to a problem than can help in the last line of the passage suggests.

I hope my analysis may prove of some help to you. Thank you for thinking to ask.

- Andrew
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Why option D is wrong in 3rd question. is it not exemplifying the misconception ?
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Question 3


swapnils10
Why option D is wrong in 3rd question. is it not exemplifying the misconception ?
Question 3 asks us to find the answer choice that "best describes the relationship of the statement about large plants in the highlighted text to the passage as a whole."

In other words, why does the author include that sentence? What purpose does it serve in the context of the author's main point?

To answer questions like this, first break down the structure of the passage as a whole. Here's a breakdown of the first paragraph:

  • First, the author introduces a myth: that environmental regulations affect all competitors in a given industry uniformly
  • Then, the author claims that this myth is wrong: He/she argues that regulatory costs fall unevenly
  • Next, he/she provides an example to support this claim: Isolated vs. non-isolated plants

Then we get to the highlighted text at the beginning of the second paragraph:
Quote:
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.
Notice the word "additionally" at the beginning of this sentence. This tells us that the author is continuing on with his/her previous discussion. So, he/she is providing another example to support the claim that regulatory costs fall unevenly.

The highlighted text doesn't exemplify the misconception (or myth) itself. Instead, it provides support for the author's claim that the myth is, in fact, totally incorrect.

Eliminate (D), and (C) is the correct answer to question 3.

I hope that helps!
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