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# One recent example of industrial hyper growth has taken place in the r

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One recent example of industrial hyper growth has taken place in the r  [#permalink]

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Updated on: 06 Mar 2018, 23:00
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Question 1
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One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market. Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.

Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber. This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.

Recycling centers are connected both to the clients to whom they sell end products and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.

1. According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?

(A) Haulers' ability to sell both services and products.
(B) Money offered by haulers to preferred customers.
(C) Foresight exhibited by the leaders of the industry.
(D) Haulers' willingness to adapt technology to a changing industry.
(E) Passage of stricter environmental legislation.

2. It can be inferred from the passage that the price of waste paper
(A) will increase steadily over the next few years
(B) will increase as more companies get involved in the industry
(C) is closely related to the availability of trash haulers
(D) is not as important to trash haulers as the price they charge for hauling waste
(E) is sometimes set by the weight of the product

3. The author of the passage would most likely agree with which of the following?
A. Competition between trash haulers and recyclers will prevent the recycled paper industry from reaching its full economic potential.
B. Pressure from anti-environmental groups has increased pressure on the government to oppose recycled paper initiatives.
C. The recycled paper industry may continue to grow at its present rate as long as the industry remains profitable.
D. The profit-seeking of recyclers have overshadowed environmental concerns in the recycled paper industry.
E. Government negligence prevented the recycled paper industry from becoming successful until the early 1990’s.

4. According to the passage, all of the following are results of the increase in the number of new mills using recycled finer except
A. The price of waste paper has risen dramatically.
B. Trash haulers are earning increased revenues.
C. Profits at recycling centers have increased more than tenfold.
D. The price of corrugated cardboard has risen.
E. Trash haulers have been forced to compete with recyclers.

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Originally posted by Sasindran on 12 Jan 2018, 10:00.
Last edited by bb on 06 Mar 2018, 23:00, edited 1 time in total.
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Re: One recent example of industrial hyper growth has taken place in the r  [#permalink]

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12 Feb 2018, 07:10
took 7 mins and few seconds
1) A
2) E
3) C
4) E

It was easy but i took 2 mins to answer question 2..

Sasindran wrote:
One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market. Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.

Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber. This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.

Recycling centers are connected both to the clients to whom they sell end products and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.
1. According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?

(A) Haulers' ability to sell both services and products.
(B) Money offered by haulers to preferred customers.
(C) Foresight exhibited by the leaders of the industry.
(D) Haulers' willingness to adapt technology to a changing industry.
(E) Passage of stricter environmental legislation.

2. It can be inferred from the passage that the price of waste paper
(A) will increase steadily over the next few years
(B) will increase as more companies get involved in the industry
(C) is closely related to the availability of trash haulers
(D) is not as important to trash haulers as the price they charge for hauling waste
(E) is sometimes set by the weight of the product

3. The author of the passage would most likely agree with which of the following?
A. Competition between trash haulers and recyclers will prevent the recycled paper industry from reaching its full economic potential.
B. Pressure from anti-environmental groups has increased pressure on the government to oppose recycled paper initiatives.
C. The recycled paper industry may continue to grow at its present rate as long as the industry remains profitable.
D. The profit-seeking of recyclers have overshadowed environmental concerns in the recycled paper industry.
E. Government negligence prevented the recycled paper industry from becoming successful until the early 1990’s.

4. According to the passage, all of the following are results of the increase in the number of new mills using recycled finer except
A. The price of waste paper has risen dramatically.
B. Trash haulers are earning increased revenues.
C. Profits at recycling centers have increased more than tenfold.
D. The price of corrugated cardboard has risen.
E. Trash haulers have been forced to compete with recyclers.

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Re: One recent example of industrial hyper growth has taken place in the r  [#permalink]

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04 Mar 2018, 09:08
GMATNinjaTwo GMATNinja

Can you help with Q#2. I could not find relevant inference from passage.
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Re: One recent example of industrial hyper growth has taken place in the r  [#permalink]

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04 Mar 2018, 10:12
1-> A --> "Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations."
"Recycling centers are connected both to the clients to whom they sell end products and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable materia."
2-> E --> "The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint." As you can easily see, the price is set by the weight.
3 -->C--> "Recycling centers are connected both to the clients to whom they sell end products and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period." From this sentence, we can infer that the author will agree with C.
4--> From paragraph 2 we can conclude that the answer is E. That trash haulers had to compete with recyclers is not mentioned.
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Re: One recent example of industrial hyper growth has taken place in the r  [#permalink]

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06 Mar 2018, 19:24
mikemcgarry GMATNinja GMATNinjaTwo sayantanc2k

Could one of you guys please explain how option E is correct for Q2? We are only given, "The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint". From this statement, how can one infer that the price is, "sometimes set by the weight of the product"? Please help!
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Re: One recent example of industrial hyper growth has taken place in the r  [#permalink]

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06 Mar 2018, 21:13
1
csaluja wrote:
mikemcgarry GMATNinja GMATNinjaTwo sayantanc2k

Could one of you guys please explain how option E is correct for Q2? We are only given, "The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint". From this statement, how can one infer that the price is, "sometimes set by the weight of the product"? Please help!

GMATNinjaTwo GMATNinja

Can you help with Q#2. I could not find relevant inference from passage.

Quote:
2. It can be inferred from the passage that the price of waste paper
(A) will increase steadily over the next few years
(B) will increase as more companies get involved in the industry
(C) is closely related to the availability of trash haulers
(D) is not as important to trash haulers as the price they charge for hauling waste
(E) is sometimes set by the weight of the product

A "Ton" is a unit of weight. We are told that "the price per Ton of waste paper has quadrupled in the past year." Thus, we know that the price per unit weight was known (as opposed to, say, price per unit volume). So, we can infer that the price was sometimes set by unit weight.

In other words, we know that price of waste paper has been measured by weight.
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Re: One recent example of industrial hyper growth has taken place in the r  [#permalink]

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07 Mar 2018, 00:10
Hello Sasindran

Would you please correct the OA you've posted for Q1 and Q2? They seem to have reversed. Q1 should have been A and Q2 should have been E, while it is the other way round now.
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Re: One recent example of industrial hyper growth has taken place in the r  [#permalink]

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07 Mar 2018, 02:13
TaN1213 wrote:
Hello Sasindran

Would you please correct the OA you've posted for Q1 and Q2? They seem to have reversed. Q1 should have been A and Q2 should have been E, while it is the other way round now.

Could you provide the source of this question so I could verify it? I don't know which paper test code this question is in.
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Re: One recent example of industrial hyper growth has taken place in the r  [#permalink]

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07 Mar 2018, 02:36
broall wrote:
TaN1213 wrote:
Hello Sasindran

Would you please correct the OA you've posted for Q1 and Q2? They seem to have reversed. Q1 should have been A and Q2 should have been E, while it is the other way round now.

Could you provide the source of this question so I could verify it? I don't know which paper test code this question is in.

Reading the above post of GmatNinjaTwo, it is clear that OA of Q2 is E whereas Q1's A option is not only the most voted option but also the logically correct.
But, ironically I don't see any post noting this difference in the OAs. This left the room for me to think that the OAs might have got reversed by mistake.

Thank you.
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Re: One recent example of industrial hyper growth has taken place in the r  [#permalink]

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07 Mar 2018, 03:40
1
This question source isn't from GMAC Paper Test. I have checked all GMAC Paper Tests and see no question like this one. I have remove tag source of this question.
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Re: One recent example of industrial hyper growth has taken place in the r   [#permalink] 07 Mar 2018, 03:40
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