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The goal of mining companies is to discover the richest,

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The goal of mining companies is to discover the richest, [#permalink] New post 05 Aug 2008, 22:03
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1. The goal of mining companies is to discover the richest, most accessible sources of the ore they mine. Their success in reaching this goal, however, is not the sole factor determining the financial success of failure of a particular company. Profits for mining companies are largely dependent on prices determined by the global supply of a given ore, not the amount of the ore supplied by any one company.

Which of the following inferences about mining companies is best supported by the information above?

(A) Discovery of a new source of ore could result in a financial loss for some mining companies.

(B) Mining companies should not invest in locating new sources of ore.

(C) Mining companies are consistently profitable as long as global supplies remain stable.

(D) Mining companies need to offset fluctuations in global supply by discovering new sources of ore.

(E) Mining companies cannot be profitable if the global supply of ore they mine increases.
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Re: CR: Mining Company (good CR) [#permalink] New post 05 Aug 2008, 22:45
I go for E .
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Re: CR: Mining Company (good CR) [#permalink] New post 05 Aug 2008, 22:56
answer should be A
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Re: CR: Mining Company (good CR) [#permalink] New post 05 Aug 2008, 23:10
x97agarwal wrote:
1. The goal of mining companies is to discover the richest, most accessible sources of the ore they mine. Their success in reaching this goal, however, is not the sole factor determining the financial success of failure of a particular company. Profits for mining companies are largely dependent on prices determined by the global supply of a given ore, not the amount of the ore supplied by any one company.

Which of the following inferences about mining companies is best supported by the information above?

(A) Discovery of a new source of ore could result in a financial loss for some mining companies.

(B) Mining companies should not invest in locating new sources of ore.

(C) Mining companies are consistently profitable as long as global supplies remain stable.

(D) Mining companies need to offset fluctuations in global supply by discovering new sources of ore.

(E) Mining companies cannot be profitable if the global supply of ore they mine increases.


I would go with (D) simply because the question says that to search for new ore could be 1 of the factor for financial success,So when the market is down then they can use this to offset the fluctuation.There needs to be some significance of the discovery of ore
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Re: CR: Mining Company (good CR) [#permalink] New post 06 Aug 2008, 05:04
good question. IMO A

B - extreme
C - no mentions of stability of global supply
D - goes against the argument... even if they find new sources .. there is no gurantee of financial sucess
E - qutes says the finding of new sources is not the sole factor... they can still make a profit due to other factors.....
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Re: CR: Mining Company (good CR) [#permalink] New post 06 Aug 2008, 06:44
IMO E
(A) Discovery of a new source of ore could result in a financial loss for some mining companies.
-- How discovery results financial loss? Financial success solely depends on profitability and global supply.

(B) Mining companies should not invest in locating new sources of ore.
-- Too extreme

(C) Mining companies are consistently profitable as long as global supplies remain stable.
-- profit depends on the price of global supply NOT just on the supply

(D) Mining companies need to offset fluctuations in global supply by discovering new sources of ore.
-- New source never offsets profit, as mentioned in stem
(E) Mining companies cannot be profitable if the global supply of ore they mine increases.
-- here we can say that profitability is not depending on the supply they mine.
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Re: CR: Mining Company (good CR) [#permalink] New post 06 Aug 2008, 06:52
x97agarwal wrote:
1. The goal of mining companies is to discover the richest, most accessible sources of the ore they mine. Their success in reaching this goal, however, is not the sole factor determining the financial success of failure of a particular company. Profits for mining companies are largely dependent on prices determined by the global supply of a given ore, not the amount of the ore supplied by any one company.

Which of the following inferences about mining companies is best supported by the information above?

(A) Discovery of a new source of ore could result in a financial loss for some mining companies.

(B) Mining companies should not invest in locating new sources of ore.

(C) Mining companies are consistently profitable as long as global supplies remain stable.

(D) Mining companies need to offset fluctuations in global supply by discovering new sources of ore.

(E) Mining companies cannot be profitable if the global supply of ore they mine increases.


Between A) and E) I will chose E)
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Re: CR: Mining Company (good CR) [#permalink] New post 06 Aug 2008, 08:12
Since it seems most people are stuck between A & E, I explain further why the answer is A), and why E is incorrect
nmohindru wrote:
x97agarwal wrote:
1. The goal of mining companies is to discover the richest, most accessible sources of the ore they mine. Their success in reaching this goal, however, is not the sole factor determining the financial success of failure of a particular company. Profits for mining companies are largely dependent on prices determined by the global supply of a given ore, not the amount of the ore supplied by any one company.

Which of the following inferences about mining companies is best supported by the information above?

(A) Discovery of a new source of ore could result in a financial loss for some mining companies.
definitely supported - the key word is 'for SOME mining companies'. discovery of a new source of ore by 1 company will increase global supply => leading to POTENTIAL financial loss for some mining companies
(B) Mining companies should not invest in locating new sources of ore.

(C) Mining companies are consistently profitable as long as global supplies remain stable.

(D) Mining companies need to offset fluctuations in global supply by discovering new sources of ore.

(E) Mining companies cannot be profitable if the global supply of ore they mine increases.
the key here is 'cannot be' - this is an absolute statement, 1 counter case can prove this false.

mining companies Can be profitable if the global supply of ore they mine increases as long as either 1) the demand also increases or 2) their supply increase out grows the global supply increase.

Therefore this statement cannot be the answer


Between A) and E) I will chose E)
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Re: CR: Mining Company (good CR) [#permalink] New post 06 Aug 2008, 09:50
OA is A.

Good explanation JasonC
Re: CR: Mining Company (good CR)   [#permalink] 06 Aug 2008, 09:50
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