Technological improvements and reduced equipment costs have : GMAT Critical Reasoning (CR)
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Technological improvements and reduced equipment costs have

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Technological improvements and reduced equipment costs have [#permalink]

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06 Mar 2008, 09:21
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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.
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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?
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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
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