Last visit was: 14 Jul 2024, 22:20 It is currently 14 Jul 2024, 22:20
Toolkit
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

# Harunia Province has a relatively dry climate and is attracting a fast

SORT BY:
Tags:
Show Tags
Hide Tags
Math Expert
Joined: 02 Sep 2009
Posts: 94342
Own Kudos [?]: 640863 [49]
Given Kudos: 85011
Intern
Joined: 02 Apr 2020
Posts: 24
Own Kudos [?]: 76 [13]
Given Kudos: 19
examPAL Representative
Joined: 07 Dec 2017
Posts: 1048
Own Kudos [?]: 1797 [10]
Given Kudos: 26
General Discussion
Manager
Joined: 03 Oct 2012
Posts: 119
Own Kudos [?]: 300 [2]
Given Kudos: 41
Location: India
Concentration: Entrepreneurship, Strategy
WE:Brand Management (Pharmaceuticals and Biotech)
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
2
Kudos
Hi, I was stuck for a long time between option B & E.
Want some help as to how we can eliminate option E?
examPAL Representative
Joined: 07 Dec 2017
Posts: 1048
Own Kudos [?]: 1797 [0]
Given Kudos: 26
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
Bombsante wrote:
Hi, I was stuck for a long time between option B & E.
Want some help as to how we can eliminate option E?

(E) is irrelevant as it doesn't address the gap in logic between 'the company is struggling with its profitability' and 'the company is pushing for regulations that could limit their revenue'.
What made you struggle with it?
Manager
Joined: 03 Oct 2012
Posts: 119
Own Kudos [?]: 300 [1]
Given Kudos: 41
Location: India
Concentration: Entrepreneurship, Strategy
WE:Brand Management (Pharmaceuticals and Biotech)
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
1
Kudos
Hi, DavidTutorexamPAL
I believe my line of reasoning was flawed, i.e. why I was stuck on option E.
VP
Joined: 14 Feb 2017
Posts: 1086
Own Kudos [?]: 2188 [0]
Given Kudos: 368
Location: Australia
Concentration: Technology, Strategy
GMAT 1: 560 Q41 V26
GMAT 2: 550 Q43 V23
GMAT 3: 650 Q47 V33
GMAT 4: 650 Q44 V36
GMAT 5: 600 Q38 V35
GMAT 6: 710 Q47 V41
WE:Management Consulting (Consulting)
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
POE'd this one.

Dave is spot on - it's extremely weak.

Typically RP question answer choices have a clear choice that allows both items in the paradox to co-exist.
CEO
Joined: 07 Mar 2019
Posts: 2617
Own Kudos [?]: 1865 [0]
Given Kudos: 763
Location: India
WE:Sales (Energy and Utilities)
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
DavidTutorexamPAL wrote:
Bunuel wrote:
Harunia Province has a relatively dry climate and is attracting a fast-growing population that has put increasing demands on its water supply. The two companies that supply water to the region have struggled to keep up with demand and still remain profitable. Yet now they are asking Harunian authorities to write residential water-use regulations that could reduce their revenues and restrict their future flexibility in supplying water profitably.

Which of the following would, if true, most logically help explain why the water-supply companies are asking the authorities to regulate residential water use?

A. The companies are planning large water-transportation and irrigation systems that require the approval of neighboring provinces.
B. The companies believe regulation is inevitable and that having it in place now will allow better planning and thus future profitability.
C. Few, if any, Harunian government officials have investments in the companies or serve on their boards of directors.
D. The companies believe that the population is not likely to continue to grow.
E. Long-term climate projections suggest that greater rainfall will eventually increase the amount of water available.

CR79041.01
OG2020 NEW QUESTION

The passage states that the companies are struggling to remain profitable and yet still asking for regulations which could reduce their revenues. So the answer choice needs to explain how these regulations will, in fact, increase the company's profits. As we do not have enough information to infer a likely reason, we'll go over all the options. This is an Alternative approach.

A. It is unclear how 'residential regulation' ties in to 'approval of neighboring provinces'. No
B. This could be a reason but is relatively weak as it talks about 'future planning / profitability' and not current rewards. Let's keep looking.
C. This is irrelevant; it does not link to profitability at all.
D. How does this bridge the gap between regulation and profitability? No
E. Again, this does not address the gap in the logic.

(B) is the only relevant option and is our answer

DavidTutorexamPAL
I agree to what you have said. But i would like to add that the question stem in itself is formulated - read 'if true' - such that 'future planning / profitability' can be talked about. Yes its weak but that's how it is.

It would have been a disaster had the question stem been
'Which of the following best explains the apparent discrepancy above?'
Then certainly it must have talked about present rewards.
Manager
Joined: 07 Nov 2017
Posts: 53
Own Kudos [?]: 22 [0]
Given Kudos: 82
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
Harunia Province has a relatively dry climate and is attracting a fast-growing population that has put increasing demands on its water supply. The two companies that supply water to the region have struggled to keep up with demand and still remain profitable. Yet now they are asking Harunian authorities to write residential water-use regulations that could reduce their revenues and restrict their future flexibility in supplying water profitably.

The two companies are doing something that goes against the common business sense. Are they seeing some form of loss in the future run while fulfilling the demand of the fast-growing population?

Which of the following would, if true, most logically help explain why the water-supply companies are asking the authorities to regulate residential water use?

A. The companies are planning large water-transportation and irrigation systems that require the approval of neighboring provinces. - The plans to set up the systems that require approval of neighbouring province is no reason to for the companies to ask Harunian authorities to do something that would impact the company's profitability. Reject

B. The companies believe regulation is inevitable and that having it in place now will allow better planning and thus future profitability. - Oh! So the companies are not seeing loss in the attempt to fulfill the demand of the growing population, but instead the company believes that implementing the changes currently will enable future profitability. That can be the reason for companies asking the Harunian authorities to do something that could impact the company's profitability in the short run but gain higher in a long run. Bingo

C. Few, if any, Harunian government officials have investments in the companies or serve on their boards of directors. - Totally irrelevant

D. The companies believe that the population is not likely to continue to grow - Even if they believe that the population is not likely to grow doesn't change the fact that the population is growing (As stated in the premise) and that company's decision could still hamper their profitability. Reject

E. Long-term climate projections suggest that greater rainfall will eventually increase the amount of water available - Oh, does that necessarily mean that this available water will fulfill the increasing demand of Harunia Province. Would the two companies still have to supply? We are not sure. We could say that their struggle to fulfill the demand might decrease. But that doesn't explain why the companies would try to cut down on their profitability by asking Harunia authorities. Reject
Director
Joined: 14 Jul 2010
Status:No dream is too large, no dreamer is too small
Posts: 959
Own Kudos [?]: 5012 [0]
Given Kudos: 690
Concentration: Accounting
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
Top Contributor
The water company ensured that regulation is coming must. So, nothing to go opposite of passing the regulation. Rather it will make long term planning adjusting with the regulation as the area is dry and people are increasing so surely demand for pure supply water will increase in the future.
VP
Joined: 11 Aug 2020
Posts: 1247
Own Kudos [?]: 207 [1]
Given Kudos: 332
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
1
Kudos
Harunia Province has a relatively dry climate and is attracting a fast-growing population that has put increasing demands on its water supply. The two companies that supply water to the region have struggled to keep up with demand and still remain profitable. Yet now they are asking Harunian authorities to write residential water-use regulations that could reduce their revenues and restrict their future flexibility in supplying water profitably.

Which of the following would, if true, most logically help explain why the water-supply companies are asking the authorities to regulate residential water use?

A. The companies are planning large water-transportation and irrigation systems that require the approval of neighboring provinces. X
-If we were to take this as true, the choice begs the question …why would a company prevent themselves from being profitable? It’s entirely possible that companies seek this approval without reducing their revenues.

B. The companies believe regulation is inevitable and that having it in place now will allow better planning and thus future profitability.
Correct. Management is forward thinking and is acting before news drops.

C. Few, if any, Harunian government officials have investments in the companies or serve on their boards of directors. X

D. The companies believe that the population is not likely to continue to grow. X
-Even if this were true, why would a company purposely limit its own revenues? Nonsense. Out.

E. Long-term climate projections suggest that greater rainfall will eventually increase the amount of water available. X
-Sidesteps the profitability issue.
Intern
Joined: 03 May 2021
Posts: 5
Own Kudos [?]: 2 [0]
Given Kudos: 9
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
Nice question , although having a good understanding by referring to the given replies , got me a better understanding.
Senior Manager
Joined: 23 Dec 2022
Posts: 312
Own Kudos [?]: 36 [1]
Given Kudos: 199
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
1
Kudos
The passage describes how the water-supply companies in Harunia Province are struggling to meet the increasing demands for water while remaining profitable. Despite this, they are asking the authorities to regulate residential water use, which could potentially reduce their revenues and restrict their future flexibility in supplying water profitably. We are asked to identify the option that would logically explain why the water-supply companies are making this request.

Option A states that the companies are planning large water-transportation and irrigation systems that require the approval of neighboring provinces. This information does not directly explain why the companies are asking for residential water-use regulations and does not provide a logical explanation for their request.

Option B suggests that the companies believe regulation is inevitable and having it in place now would allow better planning and future profitability. This option provides a logical explanation for the companies' request. If they anticipate that regulation will be imposed regardless, they may prefer to have it in place earlier to adapt their operations and plans accordingly, ensuring future profitability.

Option C states that few, if any, Harunian government officials have investments in the companies or serve on their boards of directors. While this information indicates the absence of a potential conflict of interest, it does not directly explain why the companies are asking for residential water-use regulations.

Option D states that the companies believe the population is not likely to continue to grow. This information suggests that the companies may have assessed the future demand for water and concluded that it will not increase significantly. However, it does not directly explain why they are requesting residential water-use regulations.

Option E mentions long-term climate projections suggesting increased rainfall and availability of water. This information does not logically explain why the water-supply companies are requesting residential water-use regulations. In fact, increased rainfall would potentially alleviate the strain on the water supply.

Among the options provided, option B provides the most logical explanation for the companies' request. If the companies anticipate regulation to be inevitable, having it in place earlier would allow better planning and future profitability.
Tutor
Joined: 16 Oct 2010
Posts: 15108
Own Kudos [?]: 66634 [2]
Given Kudos: 436
Location: Pune, India
Re: Harunia Province has a relatively dry climate and is attracting a fast [#permalink]
1
Kudos
1
Bookmarks
Bunuel wrote:
Harunia Province has a relatively dry climate and is attracting a fast-growing population that has put increasing demands on its water supply. The two companies that supply water to the region have struggled to keep up with demand and still remain profitable. Yet now they are asking Harunian authorities to write residential water-use regulations that could reduce their revenues and restrict their future flexibility in supplying water profitably.

Which of the following would, if true, most logically help explain why the water-supply companies are asking the authorities to regulate residential water use?

A. The companies are planning large water-transportation and irrigation systems that require the approval of neighboring provinces.
B. The companies believe regulation is inevitable and that having it in place now will allow better planning and thus future profitability.
C. Few, if any, Harunian government officials have investments in the companies or serve on their boards of directors.
D. The companies believe that the population is not likely to continue to grow.
E. Long-term climate projections suggest that greater rainfall will eventually increase the amount of water available.

CR79041.01
OG2020 NEW QUESTION

­Premises:
Harunia is dry and 2 water companies supply water to the fast-growing population.
They are struggling to keep up with demand and are profitable (since they are struggling to  keep up with demand, their cost may have increased but they are still profitable)
Unexpected Observation: They are asking Harunian authorities to regulate use of water. This could reduce their revenues and restrict their future flexibility in supplying water profitably.

This is unexpected. The companies are facing high demand and are profitable. Why would they ask the govt to regulate use which will likely reduce their revenues (regulations such as each household can consume only A litres of water in a day) and restrict their future flexibility?
We assume that all companies want to make profit. So this observation is unexpected. What will help explain why the companies are pushing for regulations?

A. The companies are planning large water-transportation and irrigation systems that require the approval of neighboring provinces.

Schemes with neighboring provinces are irrelevant. We have no info on how regulations will help in this plan.

B. The companies believe regulation is inevitable and that having it in place now will allow better planning and thus future profitability.

Correct. If the companies believe that regulations will come sooner or later and sooner is better because they will be able to plan for future profitability, then their action makes sense. The company's action has to be something to do with profitability.

C. Few, if any, Harunian government officials have investments in the companies or serve on their boards of directors.

Irrevelant.

D. The companies believe that the population is not likely to continue to grow.

In that case, they will not expect regulations. This would want to maximize profit now. Then it doesn't explain why they would ask for regulations now.

E. Long-term climate projections suggest that greater rainfall will eventually increase the amount of water available.

If the dry climate of Hurania is expected to change in time, the water companies would want to make the best of the current dry climate. Why would they want regulations right now? It doesn't help resolve the paradox.