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Passage 2 
One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.
Though many  laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling,  there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually  at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.
Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.
This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.
Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus,  the company gets paid twice for the same trash, once for hauling the waste and once for selling the    usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.
1. According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?
  • a)
    Haulers' ability to sell both services and products.
  • b)
    Money offered by haulers to preferred customers.
  • c)
    Foresight exhibited by the leaders of the industry.
  • d)
    Haulers' willingness to adapt technology to a changing industry. 
  • e)
    Passage of stricter environmental legislation.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Passage 2One recent example of industrial hyper growth has taken place...
Look for the cause of increased profits for trash haulers. This is discussed in lines 16-22. (A) paraphrases the idea that the companies haul the trash (services) and sell the recycled paper (products). (B) is a trap because preferred customers is a recognizable phrase from a different part of the passage. (C), (D), and (E) are all out of scope.
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Passage 2One recent example of industrial hyper growth has taken place...
Reason for Increase in Profits
The increase in profits in the trash hauling business can primarily be attributed to the haulers' ability to sell both services and products. Here’s a detailed explanation:
Dual Revenue Streams
- Hauling and Selling: Trash haulers have effectively combined their trash hauling operations with recycling. This means they receive payment in two ways:
- For Hauling: They get paid to collect waste from clients.
- For Selling Usable Material: They sell the recyclable material extracted from the waste, generating an additional revenue stream.
Impact of Market Conditions
- Surge in Recycling Capacity: The expansion of recycling facilities has created a higher demand for recycled materials, which in turn has increased the prices for waste paper and other recyclables.
- Profitability: As the prices for materials like waste paper and cardboard have quadrupled, haulers are positioned to benefit from these higher prices when they sell the recyclables.
Competitive Advantage
- Client Loyalty: Some haulers have chosen to rebate part of their earnings back to clients. This strategy not only helps in maintaining customer loyalty but also ensures a steady flow of business, thus supporting long-term profitability.
Conclusion
In conclusion, the ability of haulers to capitalize on both their service and product offerings has significantly driven up profits in the industry, making option 'A' the correct answer. The dual revenue model enables trash haulers to maximize their earnings in a rapidly growing recycling market.
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Passage 2One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?a)Haulers' ability to sell both services and products.b)Money offered by haulers to preferred customers.c)Foresight exhibited by the leaders of the industry.d)Haulers' willingness to adapt technology to a changing industry.e)Passage of stricter environmental legislation.Correct answer is option 'A'. Can you explain this answer?
Question Description
Passage 2One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?a)Haulers' ability to sell both services and products.b)Money offered by haulers to preferred customers.c)Foresight exhibited by the leaders of the industry.d)Haulers' willingness to adapt technology to a changing industry.e)Passage of stricter environmental legislation.Correct answer is option 'A'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Passage 2One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?a)Haulers' ability to sell both services and products.b)Money offered by haulers to preferred customers.c)Foresight exhibited by the leaders of the industry.d)Haulers' willingness to adapt technology to a changing industry.e)Passage of stricter environmental legislation.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Passage 2One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?a)Haulers' ability to sell both services and products.b)Money offered by haulers to preferred customers.c)Foresight exhibited by the leaders of the industry.d)Haulers' willingness to adapt technology to a changing industry.e)Passage of stricter environmental legislation.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Passage 2One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?a)Haulers' ability to sell both services and products.b)Money offered by haulers to preferred customers.c)Foresight exhibited by the leaders of the industry.d)Haulers' willingness to adapt technology to a changing industry.e)Passage of stricter environmental legislation.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT. Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
Here you can find the meaning of Passage 2One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?a)Haulers' ability to sell both services and products.b)Money offered by haulers to preferred customers.c)Foresight exhibited by the leaders of the industry.d)Haulers' willingness to adapt technology to a changing industry.e)Passage of stricter environmental legislation.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Passage 2One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?a)Haulers' ability to sell both services and products.b)Money offered by haulers to preferred customers.c)Foresight exhibited by the leaders of the industry.d)Haulers' willingness to adapt technology to a changing industry.e)Passage of stricter environmental legislation.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Passage 2One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?a)Haulers' ability to sell both services and products.b)Money offered by haulers to preferred customers.c)Foresight exhibited by the leaders of the industry.d)Haulers' willingness to adapt technology to a changing industry.e)Passage of stricter environmental legislation.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Passage 2One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?a)Haulers' ability to sell both services and products.b)Money offered by haulers to preferred customers.c)Foresight exhibited by the leaders of the industry.d)Haulers' willingness to adapt technology to a changing industry.e)Passage of stricter environmental legislation.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Passage 2One recent example of industrial hyper growth has taken place in the recycling industry, led by the rapid expansion of the recycled paper market.Though many laws were enacted in the late 1980s to encourage (and in some cases require) the collection of waste paper for recycling, there were not, at that time, companies with sufficient capacity to recycle it all. Consequently the collected paper accumulated in storage, usually at the expense of the recycling companies, thereby adding to their overhead and squeezing their already thin profit margins.Today a different situation exists. Fifty-seven new paper mills have been built since 1991, and of these, at least twenty-nine use recycled fiber.This surge in capacity has resulted in a concurrent rise in profits. The price per Ton of waste paper has quadrupled in the past year, as have the prices of corrugated cardboard and used newsprint. Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations.Recycling centers are connected both to the clients to whom they sell endproducts and to those from whom they collect refuse; thus, the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material. Industry profits have increased more than tenfold during this period. As the industry has become more competitive, some haulers have chosen to rebate a portion of this money to their clients in the hopes of ensuring their loyalty.1.According to the passage, which of the following is a reason for the increase in profits in the trash hauling business?a)Haulers' ability to sell both services and products.b)Money offered by haulers to preferred customers.c)Foresight exhibited by the leaders of the industry.d)Haulers' willingness to adapt technology to a changing industry.e)Passage of stricter environmental legislation.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice GMAT tests.
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