CR question

[jamesk486]

Under the agricultural policies of Country R, farmers can sell any grain not sold on the open market to a grain board at guaranteed prices. It seems inevitable that, in order to curb the resultant escalating overproduction, the grain board will in just a few years have to impose quaotas on grain production, limiting farmers to a certain flat percentage of the grain acreage they cultivated previously.
Suppose an individual farmer in country R wishes to minimize the impact on profits of the grain quota whose eventual imposition is being predidcted. If the farmer could do any of the following and wants to select the most effective course of action, which should the farmer do now?
(A) Select in advance currently less profitable grain fields and retire them if the quota takes effect.
(B) Seek long-term contracts to sell grain at a fixed price
(C) Replace obsolete tractors with more efficient new ones
(D) Put marginal land under cultivation and grow grain on it
(E) Agree with other farmers on voluntary cutbacks in grain production

help! all the answers look so tempting

[nitin86]

Under the agricultural policies of Country R, farmers can sell any grain not sold on the open market to a grain board at guaranteed prices. It seems inevitable that, in order to curb the resultant escalating overproduction, the grain board will in just a few years have to impose quaotas on grain production, limiting farmers to a certain flat percentage of the grain acreage they cultivated previously.
Suppose an individual farmer in country R wishes to minimize the impact on profits of the grain quota whose eventual imposition is being predidcted. If the farmer could do any of the following and wants to select the most effective course of action, which should the farmer do now?
(A) Select in advance currently less profitable grain fields and retire them if the quota takes effect.
(B) Seek long-term contracts to sell grain at a fixed price
(C) Replace obsolete tractors with more efficient new ones
(D) Put marginal land under cultivation and grow grain on it
(E) Agree with other farmers on voluntary cutbacks in grain production

help! all the answers look so tempting

IMO A
as, in this case though the land he is acquiring is less profitable, but he can sell that extra grain to the board, and make money. Further, when the acreage is to be reduced, this land can be sold.

B - does not guarantee the amount to be purchased

C - out of scope

D - marginal land will not get profits

E- don't know why its wrong, but it doesn't provide a solution

[airan]

How can a land which is less profitable produce extra grain ?
I think it should be D with some assumption of common sense ..
btw ..what is OA ?

[nitin86]

How can a land which is less profitable produce extra grain ?
I think it should be D with some assumption of common sense ..
btw ..what is OA ?

Dictionary meaning of "Marginal" -> Producing at a rate that barely covers production costs

Therefore, D can't be correct

[umaa]

I believe "A" is the answer.

A - As an individual formar, he can do this.

B - Not gauranteed and need others support

C - No chance

D - Not possible; Mentioned as "Marginal land"

E - Need others support.

[sulabh]

I think the answer is A.Under the new quota system,a farmer will be allowed to cultivate a fixed percentage of his land.So if a farmer identifies the land with less producivity,he can give up production in that part and minimize the effect on his profit.

[netigen]

Ans is D

Focus on the conclusion.

in order to curb the resultant escalating overproduction, the grain board will in just a few years have to impose quotas on grain production, limiting farmers to a certain flat percentage of the grain acreage they cultivated previously.

If the farmer can increase the acreage that he cultivates today then after the quote the % of land under cultivation will be higher. More land under cultivation more profits.

[peter.p.81]

I still feel D should be the answer.