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In a certain state, over 80% of the land is made up 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 its product. Both the manufacturer and the industry analysts expect 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?
Title
In a certain state
Your Result
Correct
Difficulty
Easy
Your Pace
0:03
Others' Pace
1:58
Video Explanation
Text Explanation
Answer: (A)
The argument is presented in such a way that it looks like a really bad idea to buy large farm machinery. Yet analysts are expecting profits from large farm machinery.
(A) provides the justification. Notice it says that the percent of land left to farms will not increase. However, if all the small farms are being combined into large farms, then there will be a need for large machinery.
(B) is wrong because the focus of the argument is on large machinery, not the railroad industry.
(C) does not work since food imports do not relate to large farm machinery, or, for that matter, the argument itself.
(D) doesn’t answer the fundamental question: How can investors expect to profit from large farm machinery?
(E) is irrelevant. The type of crops grown is not an issue.
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