Question

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.
• A. will increase steadily over the next few years
• B. will increase as more companies get involved in the industry
• C. is closely related to the availability of trash haulers
• D. is not as important to trash haulers as the price they charge for hauling waste
• J. is sometimes set by the weight of the product
• A. Competition between trash haulers and recyclers will prevent the recycled paper industry from reaching its full economic potential.
• B. Pressure from anti-environmental groups has increased pressure on the government to oppose recycled paper initiatives.
• C. The recycled paper industry may continue to grow at its present rate as long as the industry remains profitable.
• D. The profit-seeking of recyclers have overshadowed environmental concerns in the recycled paper industry.
• O. Government negligence prevented the recycled paper industry from becoming successful until the early 1990's.
• A. The price of waste paper has risen dramatically.
• B. Trash haulers are earning increased revenues.
• C. Profits at recycling centers have increased more than tenfold.
• D. The price of corrugated cardboard has risen.
• T. Trash haulers have been forced to compete with recyclers.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
This is a Reading Comprehension question asking for a specific detail mentioned in the passage. We need to find the reason the passage gives for the increase in profits for trash haulers.
Step 2: Detailed Explanation:
The passage explains the mechanism for increased profits in the third paragraph: "Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations." It continues, "...the company gets paid twice for the same trash, once for hauling the waste and once for selling the usable material."
This explicitly states that haulers are now selling a product (usable material) in addition to their traditional service (hauling waste), and this is the source of their increased profits.
Let's evaluate the options:

(A) This perfectly summarizes the explanation. "Services" refers to hauling the waste, and "products" refers to selling the usable material.
(B) Rebating money to customers is a result of competition, not a cause of the profit increase.
(C) The passage does not mention foresight.
(D) The passage does not mention haulers adapting technology.
(E) The legislation in the 1980s actually squeezed profit margins initially because there was not enough capacity to recycle the collected paper. The profits increased later due to the building of new mills.
Step 3: Final Answer:
The passage directly states that profits for haulers increased because they were able to combine their service of hauling with the selling of a product (recycled materials), getting paid twice for the same trash.

Answer 2

Step 1: Understanding the Concept:
This is an inference question. We need to deduce a relationship based on the information provided in the passage, even if it's not stated explicitly.
Step 2: Detailed Explanation:
The passage presents a historical comparison. In the late 1980s, there were few companies with recycling capacity, and profits were thin (implying prices for collected paper were low). Today, "Fifty-seven new paper mills have been built since 1991," and 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."
The logic presented is: More mills (companies demanding waste paper) \(\rightarrow\) Increased capacity/demand \(\rightarrow\) Higher price for waste paper. From this, we can infer that the price is driven by the demand from companies that use the paper.
Let's evaluate the options:

(A) The passage does not provide enough information to predict future trends. This is speculation, not an inference.
(B) This aligns with the logic of the passage. "More companies get[ting] involved" (specifically, mills that use paper) would increase demand and, based on the pattern described, increase the price.
(C) The passage shows the opposite. In the 1980s, paper was collected (haulers were available), but lack of recycling capacity kept prices low.
(D) The passage provides no basis for comparing the importance of the two revenue streams for haulers.
(E) The passage mentions "price per Ton," which confirms this is true, but it's a direct detail, not the main economic inference the passage supports. The question asks for an inference about the dynamics of the price, which (B) describes.
Step 3: Final Answer:
The passage demonstrates a direct relationship between the increase in the number of paper mills (companies using recycled fiber) and the dramatic rise in the price of waste paper. We can infer from this that as more companies enter the market to use this material, the price will continue to be driven up.

Answer 3

Step 1: Understanding the Concept:
This question asks us to infer the author's perspective on a related issue. We need to choose the statement that best aligns with the logic and tone of the passage.
Step 2: Detailed Explanation:
The passage describes the growth of the recycling industry in economic terms. The key turning point was the construction of new mills, which increased capacity. The author explicitly states, "This surge in capacity has resulted in a concurrent rise in profits." The entire narrative is about how market forces (supply, demand, capacity) have driven the industry's success and profitability. The author presents profitability as the engine of the industry's "hyper growth."
Given this focus, the author would likely agree that the continuation of this growth is dependent on the continuation of its driving force: profitability.
Let's evaluate the options:

(A) The passage mentions competition leading to rebates, a normal business practice, not something that will "prevent" the industry's growth.
(B) The passage does not mention anti-environmental groups.
(C) This is a logical extension of the passage's main argument. The author has clearly shown that increased capacity led to increased profits, which characterizes the industry's growth. It is reasonable to conclude the author believes that if this profitability continues, the growth will also continue.
(D) The author doesn't frame profit-seeking and environmental concerns as being in conflict. Instead, the passage shows how profit-seeking has led to a positive environmental outcome (more recycling).
(E) The passage states that the government passed laws to \textit{encourage} recycling in the 1980s. The problem was a market imbalance (lack of processing capacity), not government negligence.
Step 3: Final Answer:
The author's explanation for the industry's success is rooted in market economics, specifically the profitability that resulted from increased capacity. Therefore, the author would most likely agree that continued profitability is key to continued growth.

Answer 4

Step 1: Understanding the Concept:
This is an "EXCEPT" question, which is a type of detail question. We need to find the one answer choice that is NOT mentioned in the passage as a result of the new mills being built.
Step 2: Detailed Explanation:
Let's identify the results of the "surge in capacity" from the new mills, as listed in the passage:

"...a concurrent rise in profits."
"The price per Ton of waste paper has quadrupled..." (So, A is a result).
"...as have the prices of corrugated cardboard and used newsprint." (So, D is a result).
"Trash haulers have benefited from these conditions..." (So, B is a result).
"Industry profits have increased more than tenfold..." (So, C is a result).
"As the industry has become more competitive, some haulers have chosen to rebate a portion of this money..."
Now let's check the options against this list.

(A) Mentioned ("quadrupled").
(B) Mentioned ("benefited").
(C) Mentioned ("increased more than tenfold").
(D) Mentioned ("as have the prices of corrugated cardboard").
(E) The passage states that "Trash haulers have benefited from these conditions by combining their trash hauling and recycling operations." This means they have become part of the recycling business. It also says the industry has become "more competitive," leading haulers to compete with \textit{each other} (by offering rebates). It does NOT state that haulers are forced to compete \textit{with} recyclers as a separate, opposing group.
Step 3: Final Answer:
Options A, B, C, and D are all mentioned in the text as consequences of the new mills and increased capacity. Option E is not stated; the passage portrays haulers as participants in and beneficiaries of the recycling boom, not as a group forced to compete against it.