Maximum allowable production

[serGINho]

6795

Maximum allowable production levels of pollution for industrial concerns are usually determined in legislation that is based in large part on the recommendations of scientists at the Environmental Protection Agency. Industrial concerns must pay a fine that is proportional to the level of pollution that exceeds the limit, and this proportion should be revised every year based on the number of firms that exceeded the limit the year before to maximize the penalties assessed to polluters. However, the revision process usually occurs less frequently than once a year because lobbyists for industrial concerns usually persuade the government to hold off so as to avoid having to pay increased fines for pollution.

If the statements above are true, which of the following describes a situation in which a revision should occur?


(A) A dozen fewer firms were over the limit, but their total pollution over the limit increased over the last year.
(B) Two more firms exceeded the limit than the year before, but the net level of pollution over the limit decreased.
(C) No more firms went over the limit than the year before, but the amount of total pollution over the year before went up.
(D) No firms were over the limit, and total pollution decreased by about forty percent from the year before.
(E) Several fewer firms were over the limit than the year before, and the total pollution over the limit decreased accordingly.

[gurugowrav]

Imo B.
Based on the statements "and this proportion should be revised every year based on the number of firms that exceeded the limit the year before......."
I couldn't see any other statements which stated no. of firms exceeding the limit increased over the period of time.

[cartera]

Imo B

[rampuria]

Between A and B. I would choose A because its more extreme than B

[sh_vivek]

Between A and B. I would choose A because its more extreme than B

But then A means a dozen fewer firms than the previous year.

[Argen]

IMO A.
The second sentence in the stimulus gives 2 descriptions of the revision: 1) it should happen when the # of firms change, and 2) its purpose is to -maximize- fines. A) and B) both describe a change in the # of firms. The difference between A) and B) is, B) would lower the fines if a revision takes place , whereas A) would increase the fines, because the pollution level has increased so each firm needs to pay more fines. Therefore I think the answer is A.

[rajatmeh]

The purpose of revision is to maximum fine and that would happen when:
1) the number of firms polluting increases and
2) Total amount of pollution exceeding the limit also increases

There is no option, which says that.

rateOfFine * amount of pollution exceeding = total revenue

Revision means the increasing or decreasing the rateOfFine based on whether last year firms were more or less.

According to (A), firms decresed by 12 ==> revision will decrease the rateOfFine ==>

rateOfFine (decreased)* amount of pollution exceeding (increased) = total revenue (can increase as well as decrease, can't say unless we have actual figures)

According to (B) firms increased by 2 ==> revision will increase the rateOfFine ==>
rateOfFine (increased)* amount of pollution exceeding (decreased) = total revenue (can increase as well as decrease, can't say unless we have actual figures)

So you can't say conclusively that revenue will increase.

Any thoughts.

[serGINho]

the Official Answer is В

[spartacuss]

Answer is A !

B is not under the criteria
C is ok, but A is stronger under the criteria, C is second best answer !

[lonelygmatprep]

Bull Sh*t: Maximum allowable production levels of pollution for industrial concerns are usually determined in legislation that is based in large part on the recommendations of scientists at the Environmental Protection Agency.

Premise 1: Industrial concerns must pay a fine that is proportional to the level of pollution that exceeds the limit, and this proportion should be revised every year based on the number of firms that exceeded the limit the year before to maximize the penalties assessed to polluters.

1. Fine in $$$ proportional to amount of pollution
2. if more company exceeds limit than last year-> then revision. We do not know how many though.

Premise 2: However, the revision process usually occurs less frequently than once a year because lobbyists for industrial concerns usually persuade the government to hold off so as to avoid having to pay increased fines for pollution. - this premise is actually there to trick you.

If the statements above are true, which of the following describes a situation in which a revision should occur?-- no problem.. sit down


(A) A dozen fewer firms were over the limit, but their total pollution over the limit increased over the last year.
this brakes No.2 of Premise 1. -- gone --

(B) Two more firms exceeded the limit than the year before, but the net level of pollution over the limit decreased.
***good. this goes according to No.2 of Premise 1 where we have more farms exceeding the limit than last year. so a revision should occur.

(C) No more firms went over the limit than the year before, but the amount of total pollution over the year before went up.
--why the hell would we have a revision then?? -- out --

(D) No firms were over the limit, and total pollution decreased by about forty percent from the year before.
same reason for C - out --

(E) Several fewer firms were over the limit than the year before, and the total pollution over the limit decreased accordingly
according to No.2 in Premise 1 we need more farms to go over the limit that last year to have a revision. -- gone --

SO B IS THE ANSWER.