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Director
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Innovations in production technology and decreases in the [#permalink]
 09 Nov 2004, 17:45
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Innovations in production technology and decreases in the cost of equipment have made recycling paper into new paper products much more cost-efficient over the last twenty years. Despite these advances, though, the "point of price viability" (the price that new paper made from trees must reach to make recycled paper comparable in price) is unchanged at $2.12 per ream of paper.
Which of the following, if true, most explains why the increased cost-efficiency of recycled paper has not lowered the point of price viability?
a) The cost of unprocessed trees to make new paper has fallen dramatically.
b) The decreases in the cost of recycling equipment have occurred despite increases in the cost of raw materials required to manufacture such equipment.
c) Innovations in production technology have made it much more cost-efficient to produce new paper from trees.
d) Most paper is made from the scraps and sawdust left after processing new trees for lumber, rather than directly from the trees themselves.
e) When the price of planting new saplings to replace cut trees becomes more expensive, forests reserves not previously worth cutting become cost-effective to cut.
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Senior Manager
Joined: 21 Jun 2004
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I'll vote for C. There is a imitation of a ETS question that talks about solar energy instead of Trees.
See if this helps:
http://www.gmatclub.com/phpbb/viewtopic ... =viability
http://www.gmatclub.com/phpbb/viewtopic ... =viability
_________________
510 on my first GMAT. 610 on second GMAT.!
The struggle continues.
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GMAT Club Legend
Joined: 15 Dec 2003
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Yes, this is one of PR2005 CD questions. I seriously dislike their "duplicating" of ETS questions. I already had a discussion on this in a previous thread 
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Best Regards,
Paul
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Director
Joined: 07 Nov 2004
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Yes the answer is C and yes it is from PR
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