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Re: Although shortening was first developed as a cheaper alternative to [#permalink]
Meaning Analysis:

The sentence conveys that shortening was first developed for A, but then it was marketed for something else.

A is cheaper alternative to lard

The meaning of the sentence is important here.

Important concepts used in this sentence :

1) Tenses:

had been marketed ...... prevalence of electricity decreased describes a change in sequence of events (this means marketing was done earlier in time than decrease in prevalence of electricity

Error Analysis :

(A) was first developed as a cheaper alternative to the lard needed to make candles, it had been marketed as food (Wrong as depicted by tenses earlier. No change in sequence of events)

(B) was developed first as a cheaper alternative to the lard needed to make candles, it was marketed as food (Tricky. This means the process was developed first which is wrong)

(C) was first developed as a cheaper alternative to the lard needed to make candles, it was marketed as food (Aha ! Correct as described in the meaning analysis)

(D) was developed first as a cheaper alternative to the lard needed to make candles, marketing as food (Same error as B)

(E) developed as a cheaper alternative to the lard needed to make candles first, it was marketed as food (placing 'first' before comma means we should expect a change in meaning of the sentence through words like although. Without these words, sentence continuity is not taken care of.)
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Re: Although shortening was first developed as a cheaper alternative to [#permalink]
''Was first developed'' is clearly better than ''was developed first'' in meaning :)

So we can eliminate B, D.

Answer A: was first developed is correctly used, but '' had marketed'' is not correct => so A out.

Answer E: developed vs was marketed => makes no sense. => so E out.

Answer C: was first developed --> good
was marketed --> good

Answer C.
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Re: Although shortening was first developed as a cheaper alternative to [#permalink]
A) was first developed as a cheaper alternative to the lard needed to make candles, it had been marketed as food
"it had been" points for the sequence of events, but, in this case, "marketed as food" would have been the second event, so it would have needed no "had"

(B) was developed first as a cheaper alternative to the lard needed to make candles, it was marketed as food
This sentence lacks of contrast

(C) was first developed as a cheaper alternative to the lard needed to make candles, it was marketed as food
This is the correct choice. Similar to B but introduces "first" that expresses the contrast between the first initial intended use for the shortening and the secondo actual use.

(D) was developed first as a cheaper alternative to the lard needed to make candles, marketing as food
marketing as food modifies the entire clause before, so it would express result, but this is illogical in the intended meaning of the sentence

(E) developed as a cheaper alternative to the lard needed to make candles first, it was marketed as food
developed as a cheaper alternative? Who developed it? Lacks of a subject who can do the action of developing the shortening.

C is correct
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Re: Although shortening was first developed as a cheaper alternative to [#permalink]
Official Explanation :

The verb in the underlined portion, had been marketed, is past perfect. This occurred at the same time as was developed, which is simple past. Eliminate (A), which violates this rule. Now, evaluate the other answer choices.

Choices (B) and (C) only differ in one way: the placement of the word first, which is an adverb. Because adverbs are typically placed before verbs, eliminate (B).

Choice (C) corrects the original error, and does not make any new errors, so keep (C).

Choice (D) changes the verb to marketing,which by itself isn't a full verb; eliminate (D). Because the word shortening is a noun referring to a substance, it can not take action. Therefore, the passive voice, was developed, is necessary. Eliminate (E) for active voice. The correct answer is (C).
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Re: Although shortening was first developed as a cheaper alternative to [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Although shortening was first developed as a cheaper alternative to [#permalink]
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