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605-655 (Medium)|   Resolve Paradox|         
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 23:30
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Ans Choice E: Explain the Paradox that Even though milk production is doubled by usage of New breed of Goat , Lower net profits per adult goat than Traditionally bred Goat despite selling Milk at identical price per litre. This means Revenue generated with New Breed is twice of Traditional breed but Profits of New breed is less than Profits of traditional breed.

Any Stmt that shows Operating cost of New breed is greater than the Additional revenue generated by extra milk production will lower net profits per adult goat. Option E shows that exact relation.
A: Irrelevant with new breed generating lower profits
B: This option is a close ans choice but 30%of aggr milk revenue goes as EMI still leaves us with 1.4X more milk which should fetch us 40% more profits but not lower.
C: Volume bonus to Traditional doesn't explain lower profits to New breed of Goats.
D: Per Goat milk production is talked about in the argument and what will happen to New breed of Goats in future is immaterial.

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In a mountainous region where small-scale dairy farming has been practiced for centuries, agricultural extension officers recently documented an unexpected pattern: farms that had adopted a newly introduced breed of goat—one capable of producing roughly twice as much milk per month as the traditional local breed—reported substantially lower net profits per adult female goat per month than farms that continued raising the traditional breed, despite selling their milk at identical per-liter prices.

Which of the following, if true, does the most to explain the surprising result in the passage above?

(A) Farms raising the traditional breed have, on average, nearly twice as many female goats as those that adopted the newly introduced breed, resulting in comparable total milk output across the two groups.

(B) Most farms that have adopted the newly introduced breed have done so through a subsidized loan program; many are still repaying those loans, at a fixed monthly amount approximately equal to thirty percent of their aggregate monthly milk revenue.

(C) Regional dairy cooperatives have begun offering modest volume bonuses to farms producing above a threshold that most traditional-breed farms meet but that most farms with the newly introduced breed, having smaller herds, do not.

(D) The newly introduced breed is neither well adapted to the local climate nor robust against locally prevalent bacterial diseases, so it lives just under half as long after reaching maturity, on average, as does the traditional local breed.

(E) To sustain its elevated milk output, the newly introduced breed requires imported supplemental feed, whose cost per animal is slightly greater than the additional milk revenue generated by the new breed over the traditional local breed.

 


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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 23:45
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surprising result is:
- the new breed produce's about twice as much milk per goat, milk is being sold at the same price per litre, BUT, the new breed farms earn substantially less profit per goat.

so we need something that gives traditional breed farms considerably more revenue or lowers their costs.

A this is somewhat a trap, a careful reading of the question is its profit per goat per month per litre, so changes in goats wont impact the per goat per month....metric - reject
B new goats bring extra revenue in terms of more milk sold, so reject
C volume bonuses to trad farms means their profit would be higher but new breed farms don't get that so profit is lower - keep
D - lower lifetime revenue but comparison is per goat per month... - reject
E - tempting but weak as extra feed costs slightly less than the extra revenue produced, passage says profits are substantially lower - reject
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 23:48
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A - per goat discussion, irrelevant
B - make direct connection, hold
C - doesn't take about the new breed, no
D - per month discusseion needed, irrelevant
E - this is talking about slight loss, not substantial
as B was talking about substantial difference answer B
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 23:52
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I went for (E) on this one.
Let's try and breakdown the statement. There is a new breed of goats that the farmers have adopted. This new breed gives twice as much milk as the older one. The milk from both breeds sells at the same price per liter. Thus, for every goat the new breed should ideally generate twice the revenue as the old one. However, the per goat per month profits are lower for the new breed. This is the paradox.

Now, the basic principle of profit is that profit increases when revenue increases or cost decreases or both. Similarly, profit decreases in case the revenue decreases or cost increases or both. In our scenario, we are given that the revenue has almost doubled for every goat of the new breed. But profits are lower. So in order for this reduction in profits to happen the cost has to actually increase substantially. Ideally our correct answer should depict this in some way. Let's look at the options.

Option A: This option talks about the total milk output. However, we are given that the profit reduction is per goat. Even if the number of new breed goats are less, when we calculate the per goat profit, that should not be lower. Thus, we can eliminate this option.

Option B: Again we are talking about the aggregate revenues here. We have to look at an individual goat level comparison. Even if we over reach and assume that the loan repayments become a part of the cost of upkeep of a goat, it is still just 30% of the total revenue. Whereas, the revenue has increased by 100% (doubled, because of double the milk quantity). Hence, even after this, the profits should still increase. Regardless, this option does not explain the paradox and we can eliminate it.

Option C: Again, this option talks about a bonus on a farm level output of milk. On an individual goat level, we still do not have a direct comparison of a substantial increase in revenue by the bonus (which is anyway described as modest) for the old breed farmers. Thus, we can safely eliminate this options.

Option D: While this option attacks the life expectancy of a new breed goat, the impacts on the cost would be seen over some longer term. SInce we are looking at the per goat profit for the timeframe of a month, this reasoning should not have a bearing on why the profits are lower. We can eliminate this option.

Option E: This fits perfectly! It shows us the required increase in cost to be greater than the increase in revenue. When the cost of the feed is actually greater than the additional revenue that is generated by the extra milk the new breed produces, it is obvious that the profit will go down. This is the correct choice.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 23:59
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In a mountainous region where small-scale dairy farming has been practiced for centuries, agricultural extension officers recently documented an unexpected pattern:

farms that had adopted a newly introduced breed of goat—one capable of producing roughly twice as much milk per month as the traditional local breed—reported substantially lower net profits per adult female goat per month than farms that continued raising the traditional breed, despite selling their milk at identical per-liter prices.

Which of the following, if true, does the most to explain the surprising result in the passage above?

Net profit = Revenues - Expenses/Costs

(A) Farms raising the traditional breed have, on average, nearly twice as many female goats as those that adopted the newly introduced breed, resulting in comparable total milk output across the two groups.
The argument is concerned with net profits per adult female goat of the 2 mentioned breeds and is not concerned with total milk output.
Incorrect

(B) Most farms that have adopted the newly introduced breed have done so through a subsidized loan program; many are still repaying those loans, at a fixed monthly amount approximately equal to thirty percent of their aggregate monthly milk revenue.
This mention loan repayment obligations obligations of farmers which is not linked to net profits per adult female goat per month directly. We are more concerned with net profits = revenues - operating expenses per adult female goat per month figures.
Incorrect

(C) Regional dairy cooperatives have begun offering modest volume bonuses to farms producing above a threshold that most traditional-breed farms meet but that most farms with the newly introduced breed, having smaller herds, do not.
The bonuses are not linked to per adult female goat profit efficiency directly since they are linked to above threshold overall milk volumes. If new breed goats are used these bonuses may further increase for some farms. This does not explain the paradox regarding profit efficiency per goat per month.
Incorrect

(D) The newly introduced breed is neither well adapted to the local climate nor robust against locally prevalent bacterial diseases, so it lives just under half as long after reaching maturity, on average, as does the traditional local breed.
This may increases capital cost of the farm with reduced life span of new breed goats but does not explain the paradox of net profit efficiency per goat per month while the goats are alive and producing milk.
Incorrect

(E) To sustain its elevated milk output, the newly introduced breed requires imported supplemental feed, whose cost per animal is slightly greater than the additional milk revenue generated by the new breed over the traditional local breed.
If additional milk revenue generated by the new breed over the traditional local breed is less than cost increase per goat for feeding the new breed , then net profit per goat per month will decline. This explains the paradox cited in the argument directly.
Correct

IMO E
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 00:46
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I picked E. E shows that the cost of feed is more per goat than normal which would explain why profit per goat is lower since profit = revenue - costs.

A does have important info because if total output is the same between both breeds, we should expect total profit to be the same rather than double like the passage by itself implies. This still doesn't explain why net profit per female goat for the new breed is less than traditional though. Having more female goats would not be impact this figure on the profit per goat basis.

B the loan repayment is being paid for by aggregate monthly milk revenue so the cost per goat of both traditional and the new breed should be the same. Since they are the same it doesn't explain the decreased profit of the new breed.

C sounds like a good answer because this could be additional income that traditional goats get over the new breed, but it depends on thresholds we don't know so it doesn't clearly solve what we are looking for.

D a shorter lifespan affects profits in the long term, but the passage is looking at monthly net profit per adult female goat. In the short term lifespan doesn't matter.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 02:02
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Bunuel
In a mountainous region where small-scale dairy farming has been practiced for centuries, agricultural extension officers recently documented an unexpected pattern: farms that had adopted a newly introduced breed of goat—one capable of producing roughly twice as much milk per month as the traditional local breed—reported substantially lower net profits per adult female goat per month than farms that continued raising the traditional breed, despite selling their milk at identical per-liter prices.

Which of the following, if true, does the most to explain the surprising result in the passage above?

(A) Farms raising the traditional breed have, on average, nearly twice as many female goats as those that adopted the newly introduced breed, resulting in comparable total milk output across the two groups.

(B) Most farms that have adopted the newly introduced breed have done so through a subsidized loan program; many are still repaying those loans, at a fixed monthly amount approximately equal to thirty percent of their aggregate monthly milk revenue.

(C) Regional dairy cooperatives have begun offering modest volume bonuses to farms producing above a threshold that most traditional-breed farms meet but that most farms with the newly introduced breed, having smaller herds, do not.

(D) The newly introduced breed is neither well adapted to the local climate nor robust against locally prevalent bacterial diseases, so it lives just under half as long after reaching maturity, on average, as does the traditional local breed.

(E) To sustain its elevated milk output, the newly introduced breed requires imported supplemental feed, whose cost per animal is slightly greater than the additional milk revenue generated by the new breed over the traditional local breed.

 


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opt A - the quanity difference of breeds is never mentioned
opt B - the profit per adult female goat does not include the amount goes towards loan, there must be something related to milk.
opt C - does not explain why profit per goat is less
opt D - the profit is per month so it should have been more in the initial months but that's not the case
opt E - this is correct as the cost per goat is increased even though the profit is increased resulting in final loss
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 02:13
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Here, we need something that explains why the extra revenue doesn't lead to higher profit.

A is irrelevant. The comparison is per goat, not per farm. Eliminate
B is tempting, but it explains loan costs, not the breed itself. Eliminate
C doesn't really help. The comparison is per goat, not per herd. Eliminate
D doesn't explain the lower monthly profit. Eliminate
E sounds good imo. The extra feed costs more than the additional milk revenue, so profit per goat is lower despite higher production. Keep

Ans : E
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 02:19
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A- "comparable milk outcomes" means the profit is almost same. not the right answer.
B- 30 % of the revenue generated from milk is paid as loan interest. (let's say the cost per litre of milk is 10 Dollars, and let's say the traditional breed, produces 10 ltr per month, new breed would produce 20ltr., so revenue from the traditional breed = 100 dollars, new breed = 200 dollars, 30% (i.e 60 rs is paid as tax) remaining 140 dollars, which is still more profitable than traditional breed. Not Correct.
C- we don't know if these bonuses leed to profits. Not correct.
D- we also don't know whether their life span has an impact on profit. Unclear. Not Correct.
E- The option says that the maintenance cost of the extra feed per goat is just above profit generated by each new breed of goat, means it would not generate profit despite selling more milk. Hence, E is correct.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 02:56
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A. The numbers do not matter as we are looking at the per goat output
B. How the farmers have introduced the new breed is irrelevant
C. This does not affect the per goat comparison
D. Lifespan issue is irrelevant to the per-goat output comparison
E. This perfectly explains the reason for the missed expectations hence correct
Ans E
Bunuel
In a mountainous region where small-scale dairy farming has been practiced for centuries, agricultural extension officers recently documented an unexpected pattern: farms that had adopted a newly introduced breed of goat—one capable of producing roughly twice as much milk per month as the traditional local breed—reported substantially lower net profits per adult female goat per month than farms that continued raising the traditional breed, despite selling their milk at identical per-liter prices.

Which of the following, if true, does the most to explain the surprising result in the passage above?

(A) Farms raising the traditional breed have, on average, nearly twice as many female goats as those that adopted the newly introduced breed, resulting in comparable total milk output across the two groups.

(B) Most farms that have adopted the newly introduced breed have done so through a subsidized loan program; many are still repaying those loans, at a fixed monthly amount approximately equal to thirty percent of their aggregate monthly milk revenue.

(C) Regional dairy cooperatives have begun offering modest volume bonuses to farms producing above a threshold that most traditional-breed farms meet but that most farms with the newly introduced breed, having smaller herds, do not.

(D) The newly introduced breed is neither well adapted to the local climate nor robust against locally prevalent bacterial diseases, so it lives just under half as long after reaching maturity, on average, as does the traditional local breed.

(E) To sustain its elevated milk output, the newly introduced breed requires imported supplemental feed, whose cost per animal is slightly greater than the additional milk revenue generated by the new breed over the traditional local breed.

 


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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 03:59
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paradox=> even after producing twice as much milk per month as traditional local one. the net profit per adult female goat per month is lower.

A) This talks about just output no profit. Eliminate.
B) this is also talks about revenue, how loan is being paid from 30 percent of revenue, doesn't imply anything about profit. Eliminate.
C) This again out of scope. nothing is talking about profit. So eliminate.
D) It say the lifespan is almost on avg similar to traditional local breed. Doesn't talk about profit. Eliminate.
E) This is exactly explaining why there was a net profit was lower. coz breed require imported supplements which actully increases the operational cost which is greater than additional revenue, so definitely there would be less net profit.
Answer is E.
Bunuel
In a mountainous region where small-scale dairy farming has been practiced for centuries, agricultural extension officers recently documented an unexpected pattern: farms that had adopted a newly introduced breed of goat—one capable of producing roughly twice as much milk per month as the traditional local breed—reported substantially lower net profits per adult female goat per month than farms that continued raising the traditional breed, despite selling their milk at identical per-liter prices.

Which of the following, if true, does the most to explain the surprising result in the passage above?

(A) Farms raising the traditional breed have, on average, nearly twice as many female goats as those that adopted the newly introduced breed, resulting in comparable total milk output across the two groups.

(B) Most farms that have adopted the newly introduced breed have done so through a subsidized loan program; many are still repaying those loans, at a fixed monthly amount approximately equal to thirty percent of their aggregate monthly milk revenue.

(C) Regional dairy cooperatives have begun offering modest volume bonuses to farms producing above a threshold that most traditional-breed farms meet but that most farms with the newly introduced breed, having smaller herds, do not.

(D) The newly introduced breed is neither well adapted to the local climate nor robust against locally prevalent bacterial diseases, so it lives just under half as long after reaching maturity, on average, as does the traditional local breed.

(E) To sustain its elevated milk output, the newly introduced breed requires imported supplemental feed, whose cost per animal is slightly greater than the additional milk revenue generated by the new breed over the traditional local breed.

 


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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 04:55
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Bunuel
In a mountainous region where small-scale dairy farming has been practiced for centuries, agricultural extension officers recently documented an unexpected pattern: farms that had adopted a newly introduced breed of goat—one capable of producing roughly twice as much milk per month as the traditional local breed—reported substantially lower net profits per adult female goat per month than farms that continued raising the traditional breed, despite selling their milk at identical per-liter prices.

Which of the following, if true, does the most to explain the surprising result in the passage above?

(A) Farms raising the traditional breed have, on average, nearly twice as many female goats as those that adopted the newly introduced breed, resulting in comparable total milk output across the two groups.

(B) Most farms that have adopted the newly introduced breed have done so through a subsidized loan program; many are still repaying those loans, at a fixed monthly amount approximately equal to thirty percent of their aggregate monthly milk revenue.

(C) Regional dairy cooperatives have begun offering modest volume bonuses to farms producing above a threshold that most traditional-breed farms meet but that most farms with the newly introduced breed, having smaller herds, do not.

(D) The newly introduced breed is neither well adapted to the local climate nor robust against locally prevalent bacterial diseases, so it lives just under half as long after reaching maturity, on average, as does the traditional local breed.

(E) To sustain its elevated milk output, the newly introduced breed requires imported supplemental feed, whose cost per animal is slightly greater than the additional milk revenue generated by the new breed over the traditional local breed.

 


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Correct Answer (E)

No other option talks about the operational cost for the new breed. The increase in cost of the imported supplemental food is greater than the additional revenue earned by the sell of the milk of the new breed. Because of the extra cost for the imported food is more than the revenue earned by the selling of milk of the new breed, the net profit falls below the revenue earned by selling the milk from traditional goat.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 05:09
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Ag. officers documented an unexpected pattern. Newly adopted breed goat which produce twice as milk as traditional goats. But profits are lower for breed goat keepers when SP of milk per litre is same.
A. Irrelevant
B. We need to solve discrepancy about profits.
C. Unrelated to lower profits despite selling more milk.
D. The comparison is between adult female goats.
E. The newly introduced breed goat requires expensive feed, means it costs more to maintain a breed goat than traditional goats. And the expense is greater than the made by selling additional milk it produces. This explains the surprising result. CORRECT

E
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 05:11
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A.) The public transit system which people use are funded by gasoline taxation budget does'nt concern the argument

B) The drivers will pay double the amount for every litre of gasoline they use is mentioned in the argument , so the small to mesium sized vehicle drivers who bring the food and essential commodities will will paying double fuels cost .So it can affect the cost of lving thru grocery bills.

C ) Work from home option will strngthen the argument

D) Household ecetrcity bill may increase for some reason not mentione in the argument

E)Economisit correct prediction is out of scope to find the cost of living incrase
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 05:20
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A:- Incorrect, it discusses total output of the farm instead or per goat profit
B:- Incorrect, It discusses loans instead of per goat profit
C:- incorrect, it discusses volume bonuses, but there is ambiguity in the quantity of bonuses recevived
D;;- incorrect, it only discusses the mortality of goat but not the immediate question on per goat profit
E:- Correct, it directly addresses why per goat cost is high and profit is low

Bunuel
In a mountainous region where small-scale dairy farming has been practiced for centuries, agricultural extension officers recently documented an unexpected pattern: farms that had adopted a newly introduced breed of goat—one capable of producing roughly twice as much milk per month as the traditional local breed—reported substantially lower net profits per adult female goat per month than farms that continued raising the traditional breed, despite selling their milk at identical per-liter prices.

Which of the following, if true, does the most to explain the surprising result in the passage above?

(A) Farms raising the traditional breed have, on average, nearly twice as many female goats as those that adopted the newly introduced breed, resulting in comparable total milk output across the two groups.

(B) Most farms that have adopted the newly introduced breed have done so through a subsidized loan program; many are still repaying those loans, at a fixed monthly amount approximately equal to thirty percent of their aggregate monthly milk revenue.

(C) Regional dairy cooperatives have begun offering modest volume bonuses to farms producing above a threshold that most traditional-breed farms meet but that most farms with the newly introduced breed, having smaller herds, do not.

(D) The newly introduced breed is neither well adapted to the local climate nor robust against locally prevalent bacterial diseases, so it lives just under half as long after reaching maturity, on average, as does the traditional local breed.

(E) To sustain its elevated milk output, the newly introduced breed requires imported supplemental feed, whose cost per animal is slightly greater than the additional milk revenue generated by the new breed over the traditional local breed.

 


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Rishm
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 06:09
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A--- Does not explain the difference.
B---Irrelevant
C---Weaker explanation
D---It helps a lot, but not completely. Close call.
E---This is correct, Profit=R-C.
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alamin8
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 06:39
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(a) Farms introduced new breeds of goat, but it is not profitable despite getting 2x more milk than traditionally raised female goats.
(b) Traditional farms selling at the same price (whatever the price they used to sell) are more profitable despite having less milk.

Answer choices:
(A) The traditional farm has 2x female goats and new breed has x female goats. New farms are getting 2x milk and traditional farms are getting x amount of milk. Therefore, there is no increase of milk, eliminate.
(B) Most farms do not mean all farms are not profitable. Eliminate.
(C) Irrelevant.
(D) Tempting. However, there is no usage of Age here.
(E) Bingo! We need additional cost for new breed farms which minimizes the profit despite having 2 times more milk compared to the traditional one.

Answer: E
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redandme21
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 06:56
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A Herd size doesn't change the per goat monthly calculation, so it's irrelevant.

B Loan payments are financing costs, not monthly operating costs per goat, so they wouldn't appear in that metric.

C Volume bonuses affect total farm revenue, but they don't explain why each individual new breed goat is less profitable per month.

D Lifespan affects replacement costs over time, but it doesn't explain why a living new breed goat brings in less profit each month than a traditional one.

E Correct. If the special feed for extra milk costs more per month than that extra milk brings in, then every active month is a net loser compared to the traditional breed.

IMO E
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 07:06
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It is mentioned that new breed of goat produces twice as much milk per month as the traditional breed but the new breed had lower profits. Question asks to identify the reason for the same

Option A - This is not correct since it does not discuss about profit
Option B - This option is also false since the total deduction is still lower than total revenue
Option C - This option is also not correct as it not mentions about profit.
Option D - This option mentions about life span of the animal and hence not correct
Option E - This option seems correct as it mentions cost of feed is greater than money and hence talks about profit

Option E is the correct
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gaurikhanna17
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 17 Jul 2026, 07:12
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IMO : E
A : -- out --doesnt explain
b: possible but have doubts =---- keep
c : OUT ___ weakener
d : this doesnt resolve the monthly profit paradox -- out
E : this perfectly explain the paradox : revenue increase coz the goats produce more milk
but cost increase even more
net profit = revenue - cost actually decreases
BEST ---
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