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605-655 (Medium)|   Resolve Paradox|         
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chasing725
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 10:30
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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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A. This person is talking about how many goats are in a group. They are comparing how money each goat makes so the number of goats does not really matter.

B. If a farm has to make payments on a loan that can reduce the money they make.. This is about how the farm bought the goats, not the goats themselves.. Not every farm has a loan to pay back.

C. The extra money the farm gives to the people who work there is not very much. So this is probably not the reason for the difference in how much money the farm makes.

D. If the goats do not live as long that can hurt the farm in the run.. The question is about how much money the farm makes each month. So this is not as important.

E. The farm has to spend money on food for the goats.. Even though the goats make more milk the farm does not get enough extra money from the milk to make up for the cost of the food. So with more milk each goat actually makes less money for the farm. This is the reason for the difference in profit, per goat.

Hence, the answer to this question is Option E
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 10:43
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Pre-Thinking: There is a breed of goat giving 2X Returns on Milk; However, the proportionate increase in milk is not increasing the net profits.
Causation: Cost of maintenance, cost of upkeep, other factors and constraints surrounding operating the new breed of goats that are lowering the net profits.

A - We are not on the comparison. Even if the milk output is comparable, it doesn't explain the reason as to why the profits from the new breed of goats is much lesser.
B - This option is a trap. Even if they are paying 30% of their revenue towards clearing the loan, it still doesn't fully explain the other factors that lead to substantially less net profit.
C - This doesn't explain the surprising aspect of why the net profits are lowered. It weakens the explanation. Discard
D - This is too early to say presently, and even if that were true the bacteria would kill all the new goats whereas right now they are all surviving. So it;s out of scope.
E - This it Correct. This clearly matches with the pre-thinking. The cost of the imported feed is greater than the price of milk sold and so the goats are not paying for themselves and are operating at a loss. Hence, the net profits for the dairy farmers is also suffering as a result.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 10:49
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What can lead higher amount of reveniue leading to lower profit?

A. No of goats seems irrelevant for profit decline. Eliminate
B. Loan should be proportional if revenue and profit increase. not decline in profits. Eliminate
C. Bonuses doesnt relate to profit goong down
D. Shorter life span which doesn't relate to per month profit going down. Eliminate

Leaves us with E:
E. Feed for the goats costing more than milk prices justifies.

IMO Ans 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 16 Jul 2026, 11:06
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net profit = Revenue - cost = litres*(Price/litre) - cost

Both breed's price/litre is same. New breed generates twice the litres as compared to traditional goat

Tradition breed , Profit P_T: L*P- Cost_T
New Breed, Profit P_N: 2*L*P - cost_N

Prethinking : To have lower profiles for new breed P_N < P_T which can happen only if Cost_N >> Cost_T.

Option A : Irrelevant
Option B : Most farms have adopted newly introduced breed on which they get subsidy. Other are still paying loans to the tune of 30% of their revenue. which is significant amount. It matches with our pre-thinking. Option B is the correct answer.
Option C : Not quantified data. Modest is a subjective word. Not very concrete answer. Could not explain the surprising result.
Option D : Irrelevant
Option E : Slightly higher cost do not explain the significantly lower profits.

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 16 Jul 2026, 11:34
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The paradox under discussion is this. There is a new variety of goat which gives twice as much milk as traditional variety. Still, even at same price per milk, the profit per adult female goat is lower for this new breed as compared to the traditional breed.

Profit per female adult goat = (Selling Price per liter - Cost Price per liter) * Quantity of milk sold / Number of female adult goats. Since SP is same and quantity is doubled, either the number of goats are disproportionately different or there is some other cost which is exceeding the additional revenue accrued by the new variety of goat.

A. If the quantity of milk sold is made same by doubling the number of goats in the denominator, the profit per goat will ideally be lower in case of traditional goats. This does not help resolve the paradox
B. Any payment of loan that needs to be done comes out of the final profit left. Here we are talking about discrepancy in profit. What happens after profit is earned is irrelevant.
C. Modest volume bonuses cannot result in significant differences in profit per goat between the two breeds.
D. The life per goat is nowhere impacting our per goat profit calculation and hence is not relevant

E. This is in line with what we thought. If the additional cost is more than the additional revenue, the change in breed has resulted in a slight loss that will eat into existing profits and make the per goat profit lower than the traditional variety. Seems the most appropriate choice.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 11:39
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PARADOX QUESTION:
A - We are not discussing total prodn in this Q stem, we are discussing net profits per adult female goat per month hence not applicable.
B - Very strong contender but if you read carefully the additional overheads are 30% extra whereas goats were supposed to produce roughly twice as much so in the 45-55% range which is high than the 30% stated hence not enough to explain why net profits are LOWER.
C - Irrelevant we are not dealing with totals.
D - We are calculating net profit per month, lifecycle plays no role.
D - CORRECT. Costs are slightly more than milk revenues clearly why profits are lower.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 12:22
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Here's my solution for this question
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 12:35
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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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We would require an option that would suggest that the specialised breed would either have higher cost or lower revenue, threby leading to less profits despite having similar selling prices of milk

A - Milk output remains same for both breeds. Does not explain less profits for the new breed. EXCLUDE
B- While specifiying an extra cost (loan repayments) it does not indicate whether these costs are greater or less than that borne by traditional breed. EXCLUDE
C- While traditional herds may get some extra amount as profit, this will be the overall profit and would not count into the profit per female goat. EXCLUDE
D- A shorter lifespan does not justify why profits per goat PER MONTH would be less. EXCLUDE
E - Suggests an increase in costs for traditional breed (feed cost) vs the traditional breeders thereby justifying its lesser profit margins. KEEP

Answer - E
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 12:48
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Very interesting:

Argument says: in mountainous region an unusual observation when adopting a new breed of goat whose yield are twice that of traditional breed of goat brought substantially less profit per adult female goat per month in comparison to the later.

We have to find why this abnormality despite twice the yield in terms of milk and selling price per litre is same.

so if traditional is producing x litres per adult female Goat/month , then new breed produce 2x litre per adult female Goat.

And selling price is $y per litre. so total selling price for traditional is $ xy/month and for new breed is $ 2xy/month, despite this profit per adult female goat per month is less for newer breed.

let's say here, profit= selling price- cost price, or Revenue- expense

so only if cost price/ expense is high, can impact profit.

A) very specifically question has said per adult female per month, so total number won't impact unless we know does total number increase or decrease distribute any fixed cost. so per female production remains same and so does revenue and we don't know about cost, so not sufficient to answer.

B) Loan program they are paying 30% of revenue per month. but it has both component interest+ principle. interest component may decrease profit by increasing expense.. keeping it

C) Bonuses have no bearing on individual female got profit from selling their milk. this is some rewards on meeting threshold. not related to direct selling of milk profit. not answer

D) this statement can be true that new breed half their lives due to certain challenges but their production per month till they are alive remains the same, so why in that period net profit per month per female is less. not a answer at all.

E) It directly targets cost. see, it says cost of imported supplemented feed per adult is more and counters the additional revenue generated by additional 2x production

so revenue-expense= net profit revenue increased but expense also increased greater than revenue so net profit declined per adult goat for new breed per month.

among B & E: E is very direct and B for me like even if 30% revenue paid then also 1.4x revenue remains out of 2x so if cost or expense remains same then also profit per goat should increase. so, only E remains for me.

E is the answer
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 13:05
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A Traditional breed farms have twice as many female goats. Doesnt explain. Profit is measured per female goat. Not total revenue

B. Farms are repaying loans. This would decrease profit but only by about 30%

C. Traditional farms receive volume bonuses. This would depend on total production and not breed. As well the bonus is only modest.

D. New breed lives half as long. This would affect profitabilty over long period of time. They are measuring profits per month. Unlikely many deaths in early months.

E. BEST ANSWER The new breed requires extra feed and extra cost for feed to get additional milk. We are told that this cost is greater than the extra revenue from the milk. This best explains the parodox. Why the profits are lower than expected.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 13:06
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A-Incorrect: Herd sizes do not explain why profit is lower.
B-Incorrect: loan repayments are overall debts not monthly operating costs of goats.
C-Incorrect: we are already told milk prices are identical making bonuses out.
D-Incorrect: shorter lifespans affect herd, not monthly profit of a goat.
E-Correct: The cost of feeds per animal is greater than the additional revenue generated by the extra milk, Profit=Revenue-cost. High cost removes the extra profit.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 13:08
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(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. Profit per goat is compared, not total farm profit.

(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. Loan amount cannot equate to high cost

(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. This is for whole farm and not for each goat.

(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. Profit per month compared, not full life span

(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. Correct. This is significant increase in cost lead to lower profit

Ans E
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 16:45
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I think the answer is C.

We are being asked to find a reason for the apparent paradox of farms who have goats which produce twice as much milk having 'substantially' lower profits than other farms whose goats do not produce double milk, considering price of milk remains constant.

In profit related questions, always consider the other variables (i.e., revenue, cost). In this case, I think it is likely that there is some additional cost that is eating into their profits. Let's investigate.

A - If the total milk output is comparable and the prices are the same, they should be making similar profit, so this does not explain the profit discrepancy.

B - This describes an added cost to the farms which have the new breed - furthermore, it specifies that the cost is equal to approximately 30 percent of revenue, this is quite substantial. This is the best answer.

C - Even if you count these bonuses as revenue for the traditional breed farms which would comparatively make the net profits lower for the new-breed farms, the bonuses are described as modest which does not fit with the phrase 'substantial' in the question stem.

D - If the newly introduced breed lives half as long but produces twice as much milk as the normal breed, the total milk output should be equivalent; and with price constant profit should be equal. This does not resolve the discrepancy; eliminate.

E - This is a tempting trap answer because it fits what we are looking for with the increased cost of the newly introduced breed; however; the 'slightly greater' wording does not fit with the 'substantial' phrasing in the question stem. Eliminate.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 17:22
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The paradox is that the new breed produces about twice as much milk per goat, and milk sells for the same price per litre. Yet the farms using the new breed earn lower net profit per adult female goat.

We need an explanation for higher revenue but lower profit. I believe Option E is correct as it states that the new breed requires expensive feed that costs more than the extra milk revenue, resulting in lower profit per goat.

Looking at other options:
(A) Seems irrelevant as the comparison is profit per goat, not total farm profit
(B) Provides a partial explanation, as loan repayments depend on financing, not the breed itself
(C) Farm-level bonuses do not explain the lower profit per goat
(D) Does not explain monthly profit, as a shorter lifespan alone does not reduce monthly profit.

Answer: Option E
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 18:04
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Farms adopting a newer breed of goat that one that is capable of producing twice the milk as traditional one reported substancial lower profit from selling milk at identical per litre prices
SO Profit= Sale Price-Cost Price
Sale Price= units sold*price per litre
It is clear that the units sold is more for the newer breed and the price per litre is same for both the breeds so the sale price is either similar or more for the newer breed but as the profits are lower then the only reasonable cause is higher cost price.

SO any option that hints towards higher cost involved with raising the newer breed should be the right answer. Option E supports this statement.
option A weakens our initial ideology.
Option B talks about loan repayment but it is possible that dairy farmers who got the new breed might still own the traditional breeds as well.
Option C and D don't talk about cost at all.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 19:20
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For this passage, I faced two options as the confusing ones - B and E.
I eventually went ahead with E because that option talks about all the animals in the new breed, basically a phenomenon that applies to all and gives us solid reason to believe in the paradox. Also as the passage mentioned that even though the farmers were making profits, but the new adoption significantly reduced their profits means that operational costs must have increased somewhere along the lines, hence solidifying E as the right choice.


Option B talks about farms in many, plus what is the possibility that there are farms who have not taken a loan and still shifted to the new breed, what about their profit margins? As this option was not able to clear my questions properly, I did not believe in this paradox.

Correct Ans - E
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 21:28
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I think E is correct because it mentions newly introduced breed needs good quality supplemental seed which is expensive so the revenue generated goes into buying it so profit is less.
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GMAT Club World Cup 2026 (Day 9): In a mountainous region where small 16 Jul 2026, 22:10
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Option E To sustain its elevated milk...
This statement explains the lower net profits per adult , as with the newer breed they required better supplements to justify the milk output thus resulting in more expenditure on imported feed .

Why others are not the sol
A) In the main statement we are comparing the cost per female goats so increasing the number of goats should not be the reason as it does not affect the per female cost
B) this statement gives a real cost but this is a capital investment and does not give anything related to profits per adult female
C) This supports volume not per female profit costs
D) this statement tells the issues with the new breed but does not justify its higher expenditure
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 16 Jul 2026, 22:49
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in mountainous region, agriculture officers found an unexpected pattern.

conclusion= farms with newly adopted breed of goat reported substantially lower net profits per adult female goat per month than farms that continued having traditional breed.

the newly adopted breed produced twice as much mill per month as traditional local breed. the selling price is same per litre for both.

we need to find the reason for the contrast. so selling price is same and new one produced twice as much milk as the new one. that means they are giving out more milk at same price as traditional one but traditional one sells less milk in quantity.

profit= revenue - cost
new breed may have higher maintenance cost compared to traditional one and so whatever extra money they earn through their extra sell of milk, that just goes back into cover that cost hence profit might appear as big as it should.

A this compares number of goats. but that doesnt provide any reason why the profit was lower for new adopted breed owner. out.
B this talks about most farms that have adopted new breed did it by using loan and the loan pay is 30% of their income. but passage talks about anuy farms that has new breed reported lower profit. but this choice only talks about particular section of farms. so its tempting but gotta careful. out.
C this talks about traditional breed owner getting some volume bonuses for producing above threshold level milk but rarely does it talk about why the profit is lower for the other group. out.
D this talks about their life span that is impacted by two factors. but it just doesnt provide any light on what could be the reason for lower profit. out.
E this solely talks about the higher cost per animal that is higher than additional revenue. this completely makes sense. if the new breed relies on imported feed for producing higher level of output and the cost of such food is higher then definitely their profit will take hit as additional revenue generated will go back to cover those expense hence the profit does look lower on paper. so this helps in solving the problem.

choice 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 16 Jul 2026, 23:05
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We need to find the explanation about why the net profit (per month per adult female goat) from milk of newly added goat breed is lower than tradional goat milk despite production of twice more milk & selling the milk at identical prices.

A - That explains the total profit, but we have profit per adult female lower profit. This has not been explained in it.
B - Most farms" doesn't explain the "all farms" data.
C - Lowering of per goat profit is not explaine in it. It is similar to choice A.
D - Lifespan is irrelevent as conclusion about profit is given on per month per adult female goat basis.
E - This explains per animal suppliment price reduces the per animal profit output. That makes sense of the conclusion

Answer: 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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