On the outskirts of Beverly Hills, a cutting-edge laboratory

Question

On the outskirts of Beverly Hills, a cutting-edge “laboratory” was constructed to produce cloned chickens in a completely controlled environment for consumption. The one-acre lab is so efficient that it produces as many chickens as would 50 acres of chicken coops. However, its other expenditures are costlier, in particular, purchasing stem cells, so chicken cloned there costs five times as much as the cooped chicken now raised throughout the Midwest.

Which of the following, if true, best supports a projection that the referenced facility will be profitable?

A. Operating costs can be lowered by 20 percent when the laboratory technicians gain experience.

B. Midwestern chicken’s cost per pound is already so low that it virtually cannot be further lowered.

C. Unlike cooped chickens, cloned chickens are fed a pure diet free of any growth hormones or antibiotics, and thus can be sold for an exceptionally high price to buyers such as health-conscious dieters.

D. The market for chicken cloned in Beverly Hills is no more limited to the Beverly Hills region than the market for Midwestern chicken to the Midwest, because chicken ships relatively well.

E. Due to cheaper stem cells and high meat prices, a second cloning laboratory is being constructed in Mexico.

nusmavrik · Answer

Straight C --> Compensates for the high cost of stem cells. The keyword is "exceptionally high price"

swdatta · Answer

I picked E.

Is E incorrect because the answer choice says "cheaper stem cells" which doesn't necessarily mean cheap enough that cloned chicken will cost less than midwest chicken?

Also, C just states exceptionally higher cost but doesn't say anything to indicate that enough chicken will be sold to make cloned chickens profitable.

Any thoughts?

seekmba · Answer

E is incorrect because it is talking about constructing a secong cloning lab. Whereas the question is asking us to support the argument that the Beverly Hills lab will be profitable.

The beverly hills lab produces cloned chickens by feeding pure stuff to them. And organic/pure is anytime better than something produced with artificial hormones. Hence C.

swdatta · Answer

Thanks. Didn't read the question completely.

As you pointed out, it does say the referenced facility. Gotta cut down the stupid mistakes.

gautrang · Answer

C it is.

This is the cloned question from one of the OG question.

psychomath · Answer

Picked C here!

On the outskirts of Beverly Hills, a cutting-edge laboratory

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