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# An electric-power company gained greater profits and

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Manager
Joined: 20 Sep 2006
Posts: 53
An electric-power company gained greater profits and  [#permalink]

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Updated on: 23 Nov 2018, 07:17
1
7
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Difficulty:

35% (medium)

Question Stats:

70% (01:16) correct 30% (01:29) wrong based on 571 sessions

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Project CR Butler:Day 18:Critical Reasoning (CR2)

An electric-power company gained greater profits and provided electricity to consumers at lower rates per unit of electricity by building larger-capacity more efficient plants and by stimulating greater use of electricity within its area. To continue these financial trends, the company planned to replace an old plant by a plant with triple the capacity of its largest plant.

The company's plan as described above assumed each of the following EXCEPT:

A. Demand for electricity within the company's area of service would increase in the future.

B. Expenses would not rise beyond the level that could be compensated for by efficiency or volume of operation, or both.

C. The planned plant would be sufficiently reliable in service to contribute a net financial benefit to the company as a whole.

D. Safety measures to be instituted for the new plant would be the same as those for the plant it would replace.

E. The tripling of capacity would not result in insuperable technological obstacles to efficiency.

Originally posted by saviop on 21 Nov 2007, 15:59.
Last edited by gmat1393 on 23 Nov 2018, 07:17, edited 1 time in total.
Updated
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Joined: 09 Jul 2007
Posts: 1054
Location: London
Re: An electric-power company gained greater profits and  [#permalink]

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21 Nov 2007, 16:10
1
1
saviop wrote:
An electric-power company gained greater profits and provided electricity to consumers at lower rates per unit of electricity by building larger-capacity more efficient plants and by stimulating greater use of electricity within its area. To continue these financial trends, the company planned to replace an old plant by a plant with triple the capacity of its largest plant.
The companys plan as described above assumed each of the following EXCEPT:

A. Demand for electricity within the companys area of service would increase in the future.

B. Expenses would not rise beyond the level that could be compensated for by efficiency or volume of operation, or both.

C. The planned plant would be sufficiently reliable in service to contribute a net financial benefit to the company as a whole.

D. Safety measures to be instituted for the new plant would be the same as those for the plant it would replace.

E. The tripling of capacity would not result in insuperable technological obstacles to efficiency.

everything here is related to efficiency and profit i guess.

A. is def. a valid assumption
B. peak of the expenses is known to them so they think it can be compensated thus they can go ahead with the project
C. valid
D. no relation to profit
E. valid

D for me
Manager
Joined: 20 Sep 2006
Posts: 53
Re: An electric-power company gained greater profits and  [#permalink]

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21 Nov 2007, 17:11
Ravshonbek wrote:
saviop wrote:
An electric-power company gained greater profits and provided electricity to consumers at lower rates per unit of electricity by building larger-capacity more efficient plants and by stimulating greater use of electricity within its area. To continue these financial trends, the company planned to replace an old plant by a plant with triple the capacity of its largest plant.
The companys plan as described above assumed each of the following EXCEPT:

A. Demand for electricity within the companys area of service would increase in the future.

B. Expenses would not rise beyond the level that could be compensated for by efficiency or volume of operation, or both.

C. The planned plant would be sufficiently reliable in service to contribute a net financial benefit to the company as a whole.

D. Safety measures to be instituted for the new plant would be the same as those for the plant it would replace.

E. The tripling of capacity would not result in insuperable technological obstacles to efficiency.

everything here is related to efficiency and profit i guess.

A. is def. a valid assumption
B. peak of the expenses is known to them so they think it can be compensated thus they can go ahead with the project
C. valid
D. no relation to profit
E. valid

D for me

Thanks.
Missed the EXCEPT clause AGAIN
Manager
Joined: 05 Jun 2012
Posts: 62
Schools: IIMA
Re: An electric-power company gained greater profits and  [#permalink]

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10 Jun 2014, 23:49
1
If you look at beginning of sentence, "greater profits and provided electricity to consumers at lower rates per unit of electricity by building larger-capacity more efficient plants and by stimulating greater use of electricity within its area. "

They have two concerns : 1. Greater profits 2. Efficiency

D is option which is talking about 'security' not related to profits or efficiency so D is correct option
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Senior Manager
Status: To infinity and beyond
Joined: 26 Sep 2017
Posts: 253
Location: India
Concentration: Finance, Technology
GMAT 1: 660 Q50 V30
GPA: 3.31
WE: Engineering (Computer Software)
Re: An electric-power company gained greater profits and  [#permalink]

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06 Apr 2018, 11:35
Except D every option is the correct assumption. Straight D.
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Intern
Joined: 07 Jun 2017
Posts: 42
Location: United Arab Emirates
Schools: Queen's MBA'20
GMAT 1: 580 Q42 V28
GPA: 3.19
Re: An electric-power company gained greater profits and  [#permalink]

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16 Apr 2018, 03:45
all options except D will bring profit .IMO D
Re: An electric-power company gained greater profits and &nbs [#permalink] 16 Apr 2018, 03:45
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