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555-605 Level|   Assumption|            
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saviop
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An electric-power company gained greater profits and provided electric Updated on: 20 Sep 2023, 01:48
Originally posted by saviop on 21 Nov 2007, 16:59.
Last edited by Bunuel on 20 Sep 2023, 01:48, edited 3 times in total.
Renamed the topic and edited the question.
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D
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76% (01:48) correct 24% (01:56) wrong based on 4745 sessions

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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.
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D
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An electric-power company gained greater profits and provided electric 06 Nov 2013, 08:28
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Bumping for review and further discussion*.
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An electric-power company gained greater profits and provided electric 21 Nov 2007, 17:10
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saviop
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.
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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
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pramendrapandeya
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An electric-power company gained greater profits and provided electric 11 Jun 2014, 00:49
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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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An electric-power company gained greater profits and provided electric 05 Oct 2020, 20:14
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Here, we have to find an answer which is actually not an assumption. Why?
Because, if we see the question stem, it uses a word "EXCEPT".
So, what we have got here are 5 assumptions out of which 1 does not help us to fill the gap between the conclusion and the premises.

Analyzing the options here,
A. This is a valid assumption. Why? Because if the demand for electricity does not increase, then there won't be any increase in the profit. So, it is required that the demand for electricity increase. Wrong
B. This is a valid assumption. Why? Because if the expenses rise above the level that could be compensated by the efficiency or volume of operation, or both, then the profit that is obtained will go down. So, we have to assume that the expenses does not rise above a certain level. Wrong
C. This is a valid assumption. Why? Because this option talks about adding more benefits to the company as a whole and that should be a valid assumption. Wrong
D. This is not a valid assumption. We are really concerned about the profit that we can get from the new plant. So, we don't actually need to assume anything about the safety measures. Since we are looking for an option which is not an assumption that is required, this option is the correct answer. Correct
E. This is a valid assumption. Why? because if tripling the capacity would take a toll on the efficiency, then we cannot increase the profit. So, it is required that no issue affects the efficiency of the plant. Wrong
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An electric-power company gained greater profits and provided electric 13 Feb 2021, 21:42
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Aezon
Why is everyone so sure about the answer D? For me it is exactly A, because it is the most logical option. If I'm wrong, please explain to me
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Hey Aezon
A is incorrect as it is an important assumption. Imagine this scenario, the company triples the capacity of its plant, but the demand for electricity remains the same. What would the company even do with all the extra electricity? If they can't sell it, they certainly won't be able to increase their profit.

Hence, A is needed for the argument to be logical. If this doesn't help, I'd like to hear why you think A is correct and also why D is incorrect as that might make this discussion more fruitful.
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An electric-power company gained greater profits and provided electric 17 Feb 2021, 07:32
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Aezon
Why is everyone so sure about the answer D? For me it is exactly A, because it is the most logical option. If I'm wrong, please explain to me
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I rejected A because i could see " building larger-capacity " in the argument. Why the company would would go for larger capacity ? The basic assumption is that they may server more consumers.

When I tried to look for safety measures in the argument, i couldn't find even a hint. Then the questions came in mind, what if security measures are not same? I didn't have anything to say based on the given statements.

For others statements, at least i had some points to argue. For D , I was answerless.

Don't you agree?


I hope it helps.
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An electric-power company gained greater profits and provided electric 03 Apr 2021, 06:20
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Aezon
Why is everyone so sure about the answer D? For me it is exactly A, because it is the most logical option. If I'm wrong, please explain to me


I rejected A because i could see " building larger-capacity " in the argument. Why the company would would go for larger capacity ? The basic assumption is that they may server more consumers.

When I tried to look for safety measures in the argument, i couldn't find even a hint. Then the questions came in mind, what if security measures are not same? I didn't have anything to say based on the given statements.

For others statements, at least i had some points to argue. For D , I was answerless.

Don't you agree?

I hope it helps.
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Hey, mSKR :)
I presume that Aezon tried to find a "real" assumption in lieu of a wrong one.
In that case, answer "A" deems more obvious and logical.
Except's question type can be entangled
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An electric-power company gained greater profits and provided electric 20 Sep 2023, 01:46
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GMATNinja, @VeritasKarishma - Is option D incorrect because the same is not necessary condition?
We can install plant with either the same safety or with increased safety and hence option D is not an assumption.
Please correct my understanding
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An electric-power company gained greater profits and provided electric 31 Dec 2023, 07:58
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nikitathegreat
GMATNinja, @‌VeritasKarishma - Is option D incorrect because the same is not necessary condition?

We can install plant with either the same safety or with increased safety and hence option D is not an assumption.

Please correct my understanding
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You're correct that the information in (D) isn't necessary! The goal is to continue the trend of great profits. As you've noted, the safety measures could be the same or could be different -- we have no idea how that would affect the profits of the new plant.

I hope that helps!
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An electric-power company gained greater profits and provided electric 28 Jun 2024, 03:25
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The company's plan assumes each of the following EXCEPT:

D. Safety measures to be instituted for the new plant would be the same as those for the plant it would replace.
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An electric-power company gained greater profits and provided electric 29 Jul 2025, 22:14
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Hello from the GMAT Club VerbalBot!

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