Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Sep 0710:00 AM PDT
-11:00 AM PDT
A complete walkthrough of GMAT Club’s free 12-week GMAT study plan: what you study each week, how progress and goals are tracked, how the error log works, and how your practice unlocks paid tools at no cost.
Sep 0201:00 PM EDT
-11:59 PM EDT
Take 30% off all study plans with code COURSEWORK - Expires on Monday 9/7
Sep 0401:30 AM EDT
-02:30 AM EDT
This Labor Day, turn your hard work into real score gains. From 615→715 in 15 days to 705 in 30 days, our students prove what's possible with personalized, expert guidance. Save up to 25% on 1-on-1 tutoring.
Sep 0410:00 AM EDT
-11:59 PM EDT
We’ve worked incredibly hard to build TTP into the best test prep experience possible, and it would mean a lot to us to win Newsweek’s 2026 Readers’ Choice Award for Best Test Prep. If TTP has helped you, we’d be incredibly grateful for your vote.- Sep 07
12:01 AM PDT
-11:59 PM PDT
On the 7th, GMAT Club Tests will be Free! Including all the Quizzes, Questions, and Tests. 12 AM - 11:59 PM PDT 
Sep 0712:30 AM EDT
-01:30 AM EDT
Tejas studied hard but kept repeating the same mistakes. After 3 attempts at 645, a focused 4-week strategy helped him identify and fix what was holding him back—leading to a 695 with just 12–15 hours of study per week.- Sep 09
07:00 AM PDT
-10:00 AM PDT
Meet AdComs and explore top Master’s programs - MiM, MiF, MSc, MSBA and more. - Application Fee Waivers - Free 1-Week of GMAT Club Tests: - Master's Application Toolkit - Grand Prize Giveaway - Sep 09
10:00 AM PDT
-11:00 AM PDT
Three MBA applications. Three rejections. No interview invites. A year later, Aman was admitted to Cambridge Judge, SMU, and IMD. In this episode of MBA Admit Stories, Aman shares how he rebuilt his MBA application... 
Sep 1008:00 PM PDT
-09:00 PM PDT
Free- full-length test + 15 concept videos + 150+ short videos + study plan!
Sep 1507:00 PM EDT
-09:00 PM EST
Elite scores are possible when you enroll in a powerful GMAT course, taught live online + 6 months access to TTP OnDemand video courses included! Class starts Tues/Thurs Sept. 15, 2026 - Nov. 15, 2027, 7:00pm-9:00pm EST
Sep 2108:00 PM EDT
-10:00 PM EDT
Boost your GMAT score in less than one month in a live online class + 6 months access to TTP OnDemand video courses included! Class starts Mon, Tues, Wed, Thur, Fri Sept. 21, 2026 - Oct. 9, 2027, 7:00pm-10:00pm EST
16 Jul 2026, 08:00
Kudos
Bookmarks
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
76% (02:22) correct
24%
(02:33)
wrong
based on 360
sessions
History
Date
Time
Result
Not Attempted Yet
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.
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.
|
⚠️ Important: GMAT Club does not allow AI-generated posts. AI-generated solutions are not eligible for kudos, and users who post them may face moderation action, including a ban.
V26-57
16 Jul 2026, 09:00
Kudos
Bookmarks
Bunuel
GMAT Club Official Explanation
The surprising result is that the new breed of goat ends up being less profitable per animal per month, despite producing twice as much milk as the traditional breed. Since the milk all sells at the same per-liter price, there must be some hidden expense associated with the new breed that exceeds the surplus revenue generated by its extra milk.
Since the new breed produces roughly twice as much milk, its per-animal milk revenue is approximately double (2x) that of the traditional breed. The "extra" revenue from the new breed is therefore approximately equal to the traditional breed's entire per-animal milk revenue. To explain the surprising result, we need a hidden per-animal expense for the new breed that exceeds this whole extra revenue. (If the hidden expense just canceled out the extra revenue, the two breeds would generate equal profit per animal. We need to explain lower profit per animal for the new breed, so the expense must be greater than the extra revenue, not equal to it.)
(E) Correct. (E) describes exactly this: an extra per-animal expense (imported supplemental feed) explicitly stated to be "slightly greater than the additional milk revenue generated by the new breed over the traditional local breed." Per-animal revenue rises by X, per-animal cost rises by slightly more than X, net per-animal profit drops. Mechanism, units, and magnitude all match.
INCORRECT ANSWERS:
(A) This choice tells us that total milk revenue will be similar across the two farm types. The puzzle is about profitability per animal, not aggregate farm output, so this is a unit mismatch and doesn't explain the result.
(B) The loan repayment equals 30% of monthly milk revenue from the new breed. Since new-breed farms produce roughly twice as much milk per animal, their per-animal revenue is approximately 2R compared to the traditional breed's R. After loan repayment, new-breed per-animal revenue is 0.7 × 2R = 1.4R — still higher than the traditional breed's R. For the loan to flip the comparison and make per-animal profit lower on new-breed farms, it would need to exceed 50% of revenue, not 30%. (B) is not enough.
(C) A volume bonus to traditional-breed farms (which qualify) but not to new-breed farms (which don't) does increase per-animal revenue on traditional farms relative to new-breed farms — pointing in the right direction. However, the bonus is described as "modest," and to explain the surprising result, traditional-breed per-animal profit needs to exceed new-breed per-animal profit even though new-breed milk revenue is double. A modest bonus cannot offset a doubled revenue advantage. (C) explains a small piece of the gap, not the gap itself.
(D) Shorter lifespan affects total lifetime profit per animal, not monthly profit per animal. While each new-breed goat is alive and producing, its monthly milk revenue and monthly costs are unchanged by its eventual death. The puzzle is framed per month, so lifespan doesn't enter the comparison. Replacement costs would change this analysis, but the choice doesn't mention them.
The correct answer is (E).
General Discussion
16 Jul 2026, 08:07
Kudos
Bookmarks
i am going with option e.
profit = revenue - cost
it states that the specialised feed cost more than the extra revenue brought by the double milk production.
thus, higher production leads to lower profits.
a incorrect - herd size is not the case as the argument talks about profit per individual goat
b incorrect - loan payments are farm expense and doesn't explain the argument's [paradox
c incorrect - a modest volume bonus for traditional farms cannot outweigh the 100% revenue.
d incorrect - short lifespan means replacing goat more often but doesn't explain argument's paradox
profit = revenue - cost
it states that the specialised feed cost more than the extra revenue brought by the double milk production.
thus, higher production leads to lower profits.
a incorrect - herd size is not the case as the argument talks about profit per individual goat
b incorrect - loan payments are farm expense and doesn't explain the argument's [paradox
c incorrect - a modest volume bonus for traditional farms cannot outweigh the 100% revenue.
d incorrect - short lifespan means replacing goat more often but doesn't explain argument's paradox
