Although utilities pay less for low-quality coal per ton delivered than for high-quality coal, more low-quality coal must be burned to generate the same amount of electricity. Therefore, the proper basis for a cost comparison at any given time is the relative cost, at that time, of purchasing the amount of coal a utility needs to buy in order to generate a given amount of electricity.
Which of the following, if true, casts the most serious doubt on the accuracy of the conclusion above?The conclusion says the proper cost comparison should be based on the purchase cost of the amount of coal needed to produce a given amount of electricity.
The weakness is that purchase cost may not be the full relevant cost. If one type of coal creates extra costs after it is burned, then comparing only the purchase price is incomplete.
A. Per ton of coal burned, low-quality coal generates more ash than does high-quality coal, and the disposal of ash is becoming more expensive.
This is correct. If low-quality coal creates more ash, and ash disposal is costly, then utilities must consider disposal costs as well as purchase costs. So the proper basis for comparison is not just the relative cost of buying enough coal to generate a given amount of electricity.
B. Many large industrial centers are located closer to geological deposits of high-quality coal than they are to geological deposits of low-quality coal.
This does not directly weaken the conclusion. The conclusion already refers to coal “per ton delivered,” so transportation distance is not the key issue unless delivery cost is excluded, which the wording suggests it is not.
C. Known reserves of low-quality coal are many times larger than known reserves of high-quality coal.
This does not weaken the conclusion. Reserves may affect long-term availability, but not the proper basis for comparing current costs.
D. The price per ton of high-quality coal has been rising faster than the price per ton for low-quality coal, and this trend will continue.
This does not weaken the method of comparison. It only affects which type may become cheaper over time.
E. Coal-fired power plants that burn low-quality coal efficiently also burn high-quality coal efficiently.
This does not undermine the conclusion. It says some plants can use both types efficiently, but it does not show that purchase cost per unit of electricity is the wrong basis.
Answer: (A)