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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Intern
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Technological improvements and reduced equipment costs have [#permalink]

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24 Jul 2009, 12:43
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Technological improvements and reduced equipment costs have made converting solar energy 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 plants to be more economical than new oil-fired 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 decreaswd the threshold of economic viability?
A) The cost of oil has fallen dramatically
B) The reduction in the cost of solar-power equipment has occured 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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24 Jul 2009, 19:33
B D E are irrelevant to the question so we can ignore it.
It boils down to A and C.
threshold value is unchanged. This means that energy producing efficiencies of solar and oil remain unchanged.
We also know that the efficiency of producing solar power has increased. So we can conclude that efficiency of oil powered plants has to increase.
So ans is C
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25 Jul 2009, 03:21
IMO C
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21 Jul 2010, 10:03
Whats wrong with A?
Thanks,
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21 Jul 2010, 10:18
I think I love this question.
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21 Jul 2010, 10:38
nusmavrik wrote:
I think I love this question.

and why is that?
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21 Jul 2010, 18:57
I go with E
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22 Jul 2010, 04:44
I will go with A.
A) The cost of oil has fallen dramatically.(reduced equipment cost has made the the solar energy cost-effective.So if cost of oil also falls then the threshold will remain same )
B) The reduction in the cost of solar-power equipment has occured despite increased raw material costs for that equipment.(no effect)
C) Technological changes have increased the efficiency of oil-fired power plants.(it would increase the threshold)
D) Most electricity is generated by coal-fired or nuclear, rather than oil-fired, power plants(out of scope)
E) When the price of oil increases, reserves of oil not previously worth exploiting become economically viable. (out of scope)[/b]
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22 Jul 2010, 05:21
Ill go wid C
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22 Jul 2010, 13:35
+1 C
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11 Aug 2010, 10:00
I go with C too!
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11 Aug 2010, 10:12
I think i am the odd one to pick E. what is the OA?
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11 Aug 2010, 11:08
would pick C

OA?
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Re: Help! :). CR Question from GMATPrep [#permalink]

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11 Aug 2010, 15:58
I go with E
Re: Help! :). CR Question from GMATPrep   [#permalink] 11 Aug 2010, 15:58
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