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# Critical Reasoning Question

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Intern
Joined: 12 Jun 2009
Posts: 23
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12 Jul 2009, 03:39
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100% (01:11) correct 0% (00:00) wrong based on 2 sessions

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Hi,

I've really stumbled over this CR question. My answer was A, and the correct answer is apparently c.
I've attached a screen dump of the question.

Monkey
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Doc3.doc [115.5 KiB]

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Joined: 01 Apr 2008
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Name: Ronak Amin
Schools: IIM Lucknow (IPMX) - Class of 2014
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12 Jul 2009, 04:03
Here the catch is "efficiency" vs "cost".

Why not A > even if the cost of oil has decreased, there is a possibility that the efficiency of oil-fired plants has decreased. This means more oil has to be used to generate power. Hence, the overall cost of producing oil-fired power will increase and the price per barrel will increase.

Why C > C tells that efficiency of oil-fired plants has increased. Efficiency takes into account everything ( cost of oil + output power ). That is why if efficiency is increased the price per barrel will decrease.

treemonkey wrote:
Hi,

I've really stumbled over this CR question. My answer was A, and the correct answer is apparently c.
I've attached a screen dump of the question.

Monkey
Intern
Joined: 12 Jun 2009
Posts: 23
Followers: 0

Kudos [?]: 0 [0], given: 0

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14 Jul 2009, 02:46
Thank you so much Economist! You are brilliant.
I guess I just assumed that given the oil plants have all the existing technologies and equipment, their efficiency shouldn't drop. But I can see now how C is a better answer than A.
Re: Critical Reasoning Question   [#permalink] 14 Jul 2009, 02:46
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