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19 Apr 2021, 08:00
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Difficulty:
15%
(low)
Question Stats:
84% (01:46) correct
16%
(01:56)
wrong
based on 143
sessions
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Western Agriculture farms millions of acres of land in Alpastia, a wheat-farming region that receives extremely high amounts of rainfall. Western Agriculture's profit margins depend on taking advantage of the economies of scale resulting from their large holdings, so it is planning to purchase another two million acres of farmland in Alpastia. If the purchase is completed, over 70% of Western Agriculture's land would be devoted to wheat farming in Alpastia.
Which of the following, if true, could present the most serious disadvantage for Western Agriculture in purchasing an additional two million acres of farmland in Alpastia?
(A) Because of Western Agriculture's presence in Alpastia, farming an additional two million acres would require less manpower per acre than its current holdings.
(B) The price of wheat is expected to increase over the next decade.
(C) The heavy rainfall in Alpastia limits the number of other crops that Western Agriculture could cultivate on its land.
(D) None of Western Agriculture's competitors own more than one million acres of land in Alpastia.
(E) In regions with heavy rainfall, wheat yields are highly variable, resulting in inconsistent profits on wheat cultivation in such regions.
Which of the following, if true, could present the most serious disadvantage for Western Agriculture in purchasing an additional two million acres of farmland in Alpastia?
(A) Because of Western Agriculture's presence in Alpastia, farming an additional two million acres would require less manpower per acre than its current holdings.
(B) The price of wheat is expected to increase over the next decade.
(C) The heavy rainfall in Alpastia limits the number of other crops that Western Agriculture could cultivate on its land.
(D) None of Western Agriculture's competitors own more than one million acres of land in Alpastia.
(E) In regions with heavy rainfall, wheat yields are highly variable, resulting in inconsistent profits on wheat cultivation in such regions.
26 Apr 2021, 08:15
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Bunuel
Western Agriculture farms millions of acres of land in Alpastia, a wheat-farming region that receives extremely high amounts of rainfall. Western Agriculture's profit margins depend on taking advantage of the economies of scale resulting from their large holdings, so it is planning to purchase another two million acres of farmland in Alpastia. If the purchase is completed, over 70% of Western Agriculture's land would be devoted to wheat farming in Alpastia.
Which of the following, if true, could present the most serious disadvantage for Western Agriculture in purchasing an additional two million acres of farmland in Alpastia?
(A) Because of Western Agriculture's presence in Alpastia, farming an additional two million acres would require less manpower per acre than its current holdings.
(B) The price of wheat is expected to increase over the next decade.
(C) The heavy rainfall in Alpastia limits the number of other crops that Western Agriculture could cultivate on its land.
(D) None of Western Agriculture's competitors own more than one million acres of land in Alpastia.
(E) In regions with heavy rainfall, wheat yields are highly variable, resulting in inconsistent profits on wheat cultivation in such regions.
Which of the following, if true, could present the most serious disadvantage for Western Agriculture in purchasing an additional two million acres of farmland in Alpastia?
(A) Because of Western Agriculture's presence in Alpastia, farming an additional two million acres would require less manpower per acre than its current holdings.
(B) The price of wheat is expected to increase over the next decade.
(C) The heavy rainfall in Alpastia limits the number of other crops that Western Agriculture could cultivate on its land.
(D) None of Western Agriculture's competitors own more than one million acres of land in Alpastia.
(E) In regions with heavy rainfall, wheat yields are highly variable, resulting in inconsistent profits on wheat cultivation in such regions.
OFFICIAL EXPLANATION
E
The phrase "present the most serious disadvantage" signals that you're dealing with a weaken question here. Everything mentioned in the passage' additional acreage, a huge amount devoted to wheat farming, economies of scale' sounds good, but there is a wild card in the passage: "extremely high amounts of rainfall." We don't know whether that's good or bad, but if it's in the passage, the GMAT expects us to pay attention to it.
Choice (A) seems to weaken the argument: it supports the "economies of scale." Less manpower per acre would seem to reduce costs, which is generally a good thing, and it is what they're aiming for.
(B) is also a positive. If wheat prices increase, Western's investment will probably pay o§.
(C) mentions the heavy rainfall, but it is out of scope; Western's plan seems to be to purchase the land for wheat farming. It doesn't matter what impact the rain would have on the company's ability to do things it doesn't plan on doing.
Choice (D) is an irrelevant comparison; presumably, Western's goal is profit, not to own more or less land than its competitors.
(E), finally, looks good. The passage tells us that the majority of Western's land will be used for wheat cultivation in a region with heavy rainfall' this choice tells us that such a strategy can have highly variable results. Choice (E) is correct.
General Discussion
24 Apr 2021, 05:09
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Western Agriculture farms millions of acres of land in Alpastia, a wheat-farming region that receives extremely high amounts of rainfall. Western Agriculture's profit margins depend on taking advantage of the economies of scale resulting from their large holdings, so it is planning to purchase another two million acres of farmland in Alpastia. If the purchase is completed, over 70% of Western Agriculture's land would be devoted to wheat farming in Alpastia.
Which of the following, if true, could present the most serious disadvantage for Western Agriculture in purchasing an additional two million acres of farmland in Alpastia?
(A) Because of Western Agriculture's presence in Alpastia, farming an additional two million acres would require less manpower per acre than its current holdings. Incorrect
so it production cost will be less, support Western Agriculture plan
(B) The price of wheat is expected to increase over the next decade. Incorrect
its profit will increase
(C) The heavy rainfall in Alpastia limits the number of other crops that Western Agriculture could cultivate on its land. Incorrect
partially weakens argument, but if wheat production increase profits, this choice cant weakens argument
(D) None of Western Agriculture's competitors own more than one million acres of land in Alpastia. Incorrect
new info, irrelevant
(E) In regions with heavy rainfall, wheat yields are highly variable, resulting in inconsistent profits on wheat cultivation in such regions. Correct
so, Western Agriculture cant confirm that it can make profit by employ this plan
Which of the following, if true, could present the most serious disadvantage for Western Agriculture in purchasing an additional two million acres of farmland in Alpastia?
(A) Because of Western Agriculture's presence in Alpastia, farming an additional two million acres would require less manpower per acre than its current holdings. Incorrect
so it production cost will be less, support Western Agriculture plan
(B) The price of wheat is expected to increase over the next decade. Incorrect
its profit will increase
(C) The heavy rainfall in Alpastia limits the number of other crops that Western Agriculture could cultivate on its land. Incorrect
partially weakens argument, but if wheat production increase profits, this choice cant weakens argument
(D) None of Western Agriculture's competitors own more than one million acres of land in Alpastia. Incorrect
new info, irrelevant
(E) In regions with heavy rainfall, wheat yields are highly variable, resulting in inconsistent profits on wheat cultivation in such regions. Correct
so, Western Agriculture cant confirm that it can make profit by employ this plan
