Find all School-related info fast with the new School-Specific MBA Forum

It is currently 28 Jul 2014, 16:55

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Technological improvements and reduced equipment costs have

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
avatar
Joined: 01 Nov 2007
Posts: 146
Followers: 1

Kudos [?]: 197 [0], given: 0

Technological improvements and reduced equipment costs have [#permalink] New post 06 Mar 2008, 09:21
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
Technological improvements and reduced equipment costs have made converting solar energy directly into electricity far more cost-efficient in the last decade. However, the threshold of economic viability for solar power (that is, the price per barrel to which oil would have to rise in order for new solar power plants to be more economical than new oil-fired power plants) is unchanged at thirty-five dollars.

Which of the following, if true, does most to help explain why the increased cost-efficiency of solar power has

not decreased its threshold of economic viability?
(A) The cost of oil has fallen dramatically.
(B) The reduction in the cost of solar-power equipment has occurred despite increased raw material costs
for that equipment.
(C) Technological changes have increased the efficiency of oil-fired power plants.
(D) Most electricity is generated by coal-fired or nuclear, rather than oil-fired, power plants.
(E) When the price of oil increases, reserves of oil not previously worth exploiting become economically
viable.
Manager
Manager
avatar
Joined: 12 Feb 2008
Posts: 182
Followers: 1

Kudos [?]: 33 [0], given: 0

GMAT Tests User
Re: CR Solar Power [#permalink] New post 06 Mar 2008, 10:57
JCLEONES wrote:
Technological improvements and reduced equipment costs have made converting solar energy directly into electricity far more cost-efficient in the last decade. However, the threshold of economic viability for solar power (that is, the price per barrel to which oil would have to rise in order for new solar power plants to be more economical than new oil-fired power plants) is unchanged at thirty-five dollars.

Which of the following, if true, does most to help explain why the increased cost-efficiency of solar power has

not decreased its threshold of economic viability?
(A) The cost of oil has fallen dramatically.
(B) The reduction in the cost of solar-power equipment has occurred despite increased raw material costs
for that equipment.
(C) Technological changes have increased the efficiency of oil-fired power plants.
(D) Most electricity is generated by coal-fired or nuclear, rather than oil-fired, power plants.
(E) When the price of oil increases, reserves of oil not previously worth exploiting become economically
viable.


C ………the stem tells us that even though solar energy is getting cheaper, the relationship between the cost of solar and cost of the NEW oil based plant is not changing.
Why? Well, C gives us an explanation of exactly that. ….the reason is that the oil based plants are improved as well. ……..

Here the word NEW in the question stem helped me answer the question.

What is the OA?
VP
VP
User avatar
Joined: 22 Oct 2006
Posts: 1443
Schools: Chicago Booth '11
Followers: 7

Kudos [?]: 146 [0], given: 12

GMAT Tests User
Re: CR Solar Power [#permalink] New post 06 Mar 2008, 12:27
I'll go with B here.

Equipment costs decresased however materials costs increased so it is a wash.


C is wrong because it says the oil plants are more efficient but that does not mean the cost of oil is less, what if oil prices rise?
Re: CR Solar Power   [#permalink] 06 Mar 2008, 12:27
    Similar topics Author Replies Last post
Similar
Topics:
Technological improvements and reduced equipment costs have amansingla4 4 25 Jun 2006, 00:59
5 Experts publish their posts in the topic Technological improvements and reduced equipment costs have cool_jonny009 11 16 Feb 2006, 20:28
Technological improvements and reduced equipment costs have kimmyg 6 13 Sep 2005, 04:33
Technological improvements and reduced equipment costs have Questor 3 15 Dec 2004, 17:49
Technological improvements and reduced equipment costs have ruhi 5 04 Nov 2004, 05:11
Display posts from previous: Sort by

Technological improvements and reduced equipment costs have

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.