An electric-power company gained greater profits and : GMAT Critical Reasoning (CR)
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# An electric-power company gained greater profits and

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An electric-power company gained greater profits and [#permalink]

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22 Feb 2006, 07:20
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An electric-power company gained greater profits and provided electricity to consumers at lower rates per unit of electricity by building larger-capacity more efficient plants and by stimulating greater use of electricity within its area. To continue these financial trends, the company planned to replace an old plant by a plant with triple the capacity of its largest plant.

The companyâ€™s plan as described above assumed each of the following EXCEPT:

(A) Demand for electricity within the companyâ€™s area of service would increase in the future.
(B) Expenses would not rise beyond the level that could be compensated for by efficiency or volume of operation, or both.
(C) The planned plant would be sufficiently reliable in service to contribute a net financial benefit to the company as a whole.
(D) Safety measures to be instituted for the new plant would be the same as those for the plant it would replace.
(E) The tripling of capacity would not result in insuperable technological obstacles to efficiency.
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Director
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22 Feb 2006, 08:33
We know nothing about safety issues, I choose D
Manager
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22 Feb 2006, 18:14
I too choose (D). If we negate any of the other answer choices, company's strategy to gain more profit by decreasing cost and increasing capacity will fall apart.
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22 Feb 2006, 20:49
D for me as well. 'Safety issues' are not directly acting as an assumption.
CEO
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22 Feb 2006, 22:54
D

I think its b/w C and D.

But this must be D.

C atleast talk about finance but D talks about something (safety) never touched in the argument.
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SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

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23 Feb 2006, 05:47
Yup, the OA is "D"
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