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# In response to the increasing cost of producing energy

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In response to the increasing cost of producing energy [#permalink]

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03 Jun 2007, 18:57
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In response to the increasing cost of producing energy through traditional means, such as combustion, many utility companies have begun investing in renewable energy sources, chiefly wind and solar power, hoping someday to rely on them completely and thus lower energy costs. The utility companies claim that although these sources require significant initial capital investment, they will provide stable energy supplies at low cost. As a result, these sources will be less risky for the utilities than nonrenewable sources, such as gas, oil, and coal, whose prices can fluctuate dramatically according to availability.

The claim of the utility companies presupposes which of the following?

(A) The public will embrace the development of wind and solar power.
(B) No new deposits of gas, oil, and coal will be discovered in the near future.
(C) Weather patterns are consistent and predictable.
(D) The necessary technology for conversion to wind and solar power is not more expensive than the technology needed to create energy through combustion.
(E) Obtaining energy from nonrenewable sources, such as gas, oil and coal, cannot be made less risky.

Last edited by doe007 on 30 Apr 2013, 20:17, edited 1 time in total.

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15 Aug 2009, 05:15
crejoc wrote:
In response to the increasing cost of producing energy through traditional means, such as combustion, many utility companies have begun investing in renewable energy sources, chiefly wind and solar power, hoping someday to rely on them completely and thus lower energy costs. The utility companies claim that although these sources require significant initial capital investment, they will provide stable energy supplies at low cost. As a result, these sources will be less risky for the utilities than nonrenewable sources, such as gas, oil, and coal, whose prices can fluctuate dramatically according to availability.
The claim of the utility companies presupposes which of the following?

A) The public will embrace the development of wind and solar power.

B) No new deposits of gas, oil, and coal will be discovered in the near future.

C) Weather patterns are consistent and predictable.

D) The necessary technology for conversion to wind and solar power is not more expensive than the technology needed to create energy through combustion.

E) Obtaining energy from nonrenewable sources, such as gas, oil and coal, cannot be made less risky.

I don't know here... It's kind of like there's more than one good answer. While the outlined portions do support the OA (in that you need predictability for the renewable energy to be worth it), I initially went for E. While E discusses the risky-ness of traditional stuff, the OA deals with the risky-ness of renewable energy...

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16 Aug 2009, 02:28
DanaJ wrote:

E) Obtaining energy from nonrenewable sources, such as gas, oil and coal, cannot be made less risky.

I initially went for E. While E discusses the risky-ness of traditional stuff, the OA deals with the risky-ness of renewable energy...

I think , ofcourse E is also an assumption , but C is a stronger assumption than E, because E is something that can be directly presupposed, as it is already stated in the premise "As a result, these sources will be less risky for the utilities than nonrenewable sources" then it is obivious that "nonrenewable sources cannot be made less risky" . But anyway C and E are close...

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16 Aug 2009, 22:04
Agree with crejoc.

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17 Aug 2009, 02:03
Conclusion : renewable sorces are less risky ...........

so author must assume that there is no factor causing hindrance in power generation from these sources. Hence, answer is C.

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17 Aug 2009, 04:23
C is correct.

Assumption is "stable energy"
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In response to the increasing cost of producing energy [#permalink]

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05 Oct 2009, 09:23
8. In response to the increasing cost of producing energy through traditional
means, such as combustion, many utility companies have begun investing in
renewable energy sources, chiefly wind and solar power, hoping someday to
rely on them completely and thus lower energy costs. The utility companies
claim that although these sources require significant initial capital investment,
they will provide stable energy supplies at low cost. As a result, these
sources will be less risky for the utilities than nonrenewable sources, such as
gas, oil, and coal, whose prices can fluctuate dramatically according to
availability. The claim of the utility companies presupposes which of the
following?
• The public will embrace the development of wind and solar power.
• No new deposits of gas, oil, and coal will be discovered in the near future.
• Weather patterns are consistent and predictable.
• The necessary technology for conversion to wind and solar power is not more
expensive than the technology needed to create energy through combustion.
• Obtaining energy from nonrenewable sources, such as gas, oil and coal,

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05 Oct 2009, 09:41
should be "Weather patterns are consistent and predictable"

OA?

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05 Oct 2009, 09:58
The OA will follow....

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05 Oct 2009, 11:23
hitman4683v1 wrote:
8. In response to the increasing cost of producing energy through traditional
means, such as combustion, many utility companies have begun investing in
renewable energy sources, chiefly wind and solar power, hoping someday to
rely on them completely and thus lower energy costs. The utility companies
claim that although these sources require significant initial capital investment,
they will provide stable energy supplies at low cost. As a result, these
sources will be less risky for the utilities than nonrenewable sources, such as
gas, oil, and coal, whose prices can fluctuate dramatically according to
availability. The claim of the utility companies presupposes which of the
following?
• The public will embrace the development of wind and solar power.
==> whether public will embrace the new techonology is not the matter of concern. The argument says that energy generation from renewable sources (wind and solar) will be less risky since price will be stable.• No new deposits of gas, oil, and coal will be discovered in the near future.
==> Even if new deposits of gas, oil and coal are discovered, the conclusion will stand tall. • Weather patterns are consistent and predictable.
==> If weather patterns and inconsistent and unpredicable, the power supply will be hampered hence the conclusion that power price will be stable is weakened. Hence it is the right answer.• The necessary technology for conversion to wind and solar power is not more
expensive than the technology needed to create energy through combustion.
==> Even if new tenchnogoy costs more, the conclusion will stand tall.• Obtaining energy from nonrenewable sources, such as gas, oil and coal,
==> I will keep this option as contender. I prefer option "C" because the conlusion states the renewable sources of energy will be less risky. It does not bother if nonrenewable sources can be made less risk.

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05 Oct 2009, 13:36
gmataspirant2009 wrote:
hitman4683v1 wrote:
8. In response to the increasing cost of producing energy through traditional
means, such as combustion, many utility companies have begun investing in
renewable energy sources, chiefly wind and solar power, hoping someday to
rely on them completely and thus lower energy costs. The utility companies
claim that although these sources require significant initial capital investment,
they will provide stable energy supplies at low cost. As a result, these
sources will be less risky for the utilities than nonrenewable sources, such as
gas, oil, and coal, whose prices can fluctuate dramatically according to
availability. The claim of the utility companies presupposes which of the
following?
• The public will embrace the development of wind and solar power.
==> whether public will embrace the new techonology is not the matter of concern. The argument says that energy generation from renewable sources (wind and solar) will be less risky since price will be stable.• No new deposits of gas, oil, and coal will be discovered in the near future.
==> Even if new deposits of gas, oil and coal are discovered, the conclusion will stand tall. • Weather patterns are consistent and predictable.
==> If weather patterns and inconsistent and unpredicable, the power supply will be hampered hence the conclusion that power price will be stable is weakened. Hence it is the right answer.• The necessary technology for conversion to wind and solar power is not more
expensive than the technology needed to create energy through combustion.
==> Even if new tenchnogoy costs more, the conclusion will stand tall.• Obtaining energy from nonrenewable sources, such as gas, oil and coal,
==> I will keep this option as contender. I prefer option "C" because the conlusion states the renewable sources of energy will be less risky. It does not bother if nonrenewable sources can be made less risk.

IMO C. Good explanation. Prices won't be stable if we have unpredictable and inconsistent weather patterns.

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05 Oct 2009, 17:33
IMO = E • Obtaining energy from nonrenewable sources, such as gas, oil and coal,

All the other (first 4 choices) are beyond the scope. Thus 'E' is correct.

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05 Oct 2009, 23:27
Stuckup between C and E, imo-E

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06 Oct 2009, 06:31
Hi Hitman, please post the official answer with explanation, we are eagerly waiting!

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06 Oct 2009, 06:55
Hi all,
The OA is C.

The conclusion of the argument is that renewable sources of energy, chiefly solar
and wind, will be less risky for certain utilities than nonrenewable sources, such
as oil and gas. The basis for this claim is that the renewable sources will provide
stable, low-cost supplies of energy, whereas the prices for nonrenewable
sources will fluctuate according to availability. We are asked to find an
assumption underlying this argument. In order for this argument to be valid, it
must in fact be true that these renewable sources of energy will provide stable,
low-cost supplies.
(A) The utility companies' claim has to do with the supply risk of the new energy
sources, not with how these sources are received by the public.
(B) If no new supplies of traditional energy sources are found, then it is true that
perhaps these nonrenewable supplies will continue to fluctuate in price in a risky
manner. However, the argument does not depend upon any assumption about
the future discovery of oil and gas supplies.
(C) CORRECT. If we assume that weather patterns are consistent and
predictable, then with the stated premises, we can conclude that solar and wind
power will be less risky than oil and gas. If, on the other hand, weather patterns
are not consistent and predictable, then solar and wind power are not reliable
and thus will not provide "stable energy supplies at low cost." Thus, the
argument's conclusion directly depends on this assumption.
(D) To reach the required conclusion, it is not necessary to assume that the
conversion technology for new sources is not more expensive than the present
technology.
(E) This choice does not directly affect the argument. Whether or not energy
produced through combustion can be made less risky, the new energy sources
might still be less risky than the older sources. Plus, its not just the risk associated with
renewable resources that affects the argument. The other factor of availibility is still present

Nice explanation from gmataspirant2009 too....
This has been taken from http://gmat-cr.blogspot.com/search/labe ... Assumption

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06 Oct 2009, 06:58
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Hi Syed.. I too thought that E would be appropriate the very first time....
But a lil thought into it and then u can delete E safely
Took me around 2.5 minutes, to do this....
Anyways nice responses ppl.....

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06 Oct 2009, 08:47
Thanks a lot Hitman! +1 kudos for you!

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06 Oct 2009, 12:20
Thanks Syed!!!

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In response to the increasing cost of producing energy [#permalink]

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02 Nov 2009, 05:14
In response to the increasing cost of producing energy through traditional means, such as combustion, many utility companies have begun investing in renewable energy sources, chiefly wind and solar power, hoping someday to rely on them completely and thus lower energy costs. The utility companies claim that although these sources require significant initial capital investment, they will provide stable energy supplies at low cost. As a result, these sources will be less risky for the utilities than nonrenewable sources, such as gas, oil, and coal, whose prices can fluctuate dramatically according to availability.

The claim of the utility companies presupposes which of the following?
a) The public will embrace the development of wind and solar power.
b) No new deposits of gas, oil, and coal will be discovered in the near future.
c) Weather patterns are consistent and predictable.
d) The necessary technology for conversion to wind and solar power is not more expensive than the technology needed to create energy through combustion.
e) Obtaining energy from nonrenewable sources, such as gas, oil and coal, cannot be made less risky.

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02 Nov 2009, 06:05
A,B and C are out of scope as nothing is said about the public's demand or new deposits of coal etc or weather pattern.

so D in my opinion.Can anyone confirm this??

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02 Nov 2009, 07:37
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The official answer is C. Though even i don't agree. Following is the explanation given.
Can any of the experts make it simpler for us to understand?

The conclusion of the argument is that renewable sources of energy, chiefly solar and wind, will be less risky for certain utilities than nonrenewable sources, such as oil and gas. The basis for this claim is that the renewable sources will provide stable, low-cost supplies of energy, whereas the prices for nonrenewable sources will fluctuate according to availability. We are asked to find an assumption underlying this argument. In order for this argument to be valid, it must in fact be true that these renewable sources of energy will provide stable, low-cost supplies.

(A) The utility companies' claim has to do with the supply risk of the new energy sources, not with how these sources are received by the public.

(B) If no new supplies of traditional energy sources are found, then it is true that perhaps these nonrenewable supplies will continue to fluctuate in price in a risky manner. However, the argument does not depend upon any assumption about the future discovery of oil and gas supplies.

(C) CORRECT. If we assume that weather patterns are consistent and predictable, then with the stated premises, we can conclude that solar and wind power will be less risky than oil and gas. If, on the other hand, weather patterns are not consistent and predictable, then solar and wind power are not reliable and thus will not provide "stable energy supplies at low cost." Thus, the argument's conclusion directly depends on this assumption.

(D) To reach the required conclusion, it is not necessary to assume that the conversion technology for new sources is not more expensive than the present technology.

(E) This choice does not directly affect the argument. Whether or not energy produced through combustion can be made less risky, the new energy sources might still be less risky than the older sources.

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Re: MGMAT CR   [#permalink] 02 Nov 2009, 07:37

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