In a certain state, over 80% of the land is comprised of farms, but

Question

In a certain state, over 80% of the land is comprised of farms, but historically, large farm machinery has not sold well in this state. The percentage of land devoted to farms is not expected to increase. In fact, the number of farms in the state has been slowly declining over the past decade. A new manufacturer of large farm equipment is building a factory in the middle of this state, and the manufacturer's plans for success depend on strong in-state sales of their product. Both the manufacturer and the industry analysts are expecting this manufacturer to be quite successful over the next few years.

Which of the following, if true, most helps to provide a justification for the manufacturer's and the industry analysts' optimistic expectations?

(A) Land previously owned by small, independent farmers has been bought up and consolidated into large industrial farms, which have a much greater need of large farm equipment.

(B) The manufacturer's new factory will be on or close to five different railroad lines, and is expected to have a beneficial impact on the struggling rail transport industry in the state.

(C) The percentage of food imported into the state, from other states and from other countries, has increased significantly over the past 20 years.

(D) The number of models of large farm machinery this manufacturer will offer is larger than the number of models offered by most other comparable manufacturers of large farm machinery.

(E) Some crops grown in this state, like corn, enjoy substantial government subsidies and find a robust market in the food processing industries.

This is a  CR Butler Question

Check the links to other Butler Projects:

Data Sufficiency Butler  
  Problem Solving Butler  
  Sentence Correction Butler  
  Reading Comprehension Butler  
  Integrated Reasoning Butler

dkpkoti · Answer

Background: In a certain state, over 80% of the land is comprised of farms, but historically, large farm machinery has not sold well in this state.

Premise: The percentage of land devoted to farms is not expected to increase. In fact, the number of farms in the state has been slowly declining over the past decade.

Premise: A new manufacturer of large farm equipment is building a factory in the middle of this state, and the manufacturer's plans for success depend on strong in-state sales of their product. 
Conclusion: The manufacturer and the industry analysts are expecting this manufacturer to be quite successful over the next few years.

The answer needs to explain the contrast b/w the manufacturer and the industry analysts expectation and the historical trend and should emphasise of the market shift in demand. hence, A explains it well.

B- Incorrect, different context.
C- Incorrect- what is does is kind of weaken the claim. if the import is increased for food, the need for farming may decrease proportionally.
D- Incorrect - brings in new information about models of equipments. from the argument we cant assume if the lack of variety in model can explain the past trend.
E- incorrect- The subsidies might help farmers economically, but if those farmers are smaller operations or are declining in number, it doesn’t resolve the fundamental concern about machinery sales.

Krunaal · Answer

(A) This directly addresses the issue. If small farms are being consolidated into large industrial farms, the demand for large farm machinery is likely to increase, providing a strong reason for expecting higher sales of large farm equipment.  This supports the optimism for success.

(B) While this might be beneficial for the logistics of transporting machinery, it doesn’t directly address the issue of in-state demand for large farm equipment.  Not directly relevant to sales expectations.

(C) This suggests that the state is relying more on external food sources, which could imply less local agricultural production. This doesn’t support the expectation of increased demand for large farm equipment.  Not helpful for justifying success.

(D) Offering more models doesn't directly indicate that the demand for large farm machinery will increase, and therefore doesn't justify the expectation of success.  Not directly relevant.

(E) While government subsidies might encourage farming, this doesn't explain why large farm equipment sales, in particular, would increase.  Not the best explanation for the expected success.

Answer A.

Bunuel · Answer

OFFICIAL EXPLANATION

This is a paradox question. It would seem the picture is not promising, but both this manufacturer and the industry analysts predict success. There is something we are missing.

(A) is the credited answer. If large farms are buying small farms, then that would explain both why the total number of farms is declining and why there will be a burgeoning market for large farm equipment. This answer choice reframes the scenario as one advantageous for this manufacturer.

(B) is irrelevant: if there's no market for the new large farm equipment, then this manufacturer will not do well, even if they are helping the railroad industry.

(C) does the opposite of what we want. If more food is imported, then this means less is grown in the state, which in turn, means fewer farms and less agricultural business. Not good for the manufacturer.

(D) is not particularly relevant: if folks don't need large farm equipment, it doesn't matter if a manufacturer has three models or 47 models --- if folks don't need it, they just don't need it.

(E) is a strange distractor: if corn is subsidized, then presumably that would keep some farms afloat, but we already know the number of farms is declining, so it's just not clear how the manufacturer would benefit from this.

In a certain state, over 80% of the land is comprised of farms, but

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Critical Reasoning (CR) Questions

In a certain state, over 80% of the land is comprised of farms, but

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards