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

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26 Sep 2012, 04:20
+1 C

It is an “Assumption” type question

Premise 1 - 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

Premise 2 - The utility companies claim that although these sources require significant initial capital investment, they

Premise 3 or Sub-Conclusion - will provide stable energy supplies at low cost.

Conclusion - 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

If we look at Premise 2 and Premise 3 (sub-conclusion), the company concludes that renewable source provide stable energy supplies at low cost in spite of the fact that it requires high initial cost. There is an assumption here i.e. the weather patterns (a pre-requisite for solar and wind power) will be consistent and predictable. If you negate this statement it completely destroys the sub-conclusion and also the main conclusion.

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

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28 Dec 2012, 16:46
So, the reason I chose B is

Quote:
whose prices can fluctuate dramatically according to availability.

We have a clear statement in the conclusion which depends on the availability of non-renewable sources.

I did not choose C because even though we know it through common knowledge, the passage did not mention how important a role the weather would play w.r.t harnessing renewable energy.

Any views?

Also, I find many MGMAT CR questions with debatable OA. Would such appear on the GMAT ( what I mean is 2 partially correct answers)
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In response to the increasing cost of producing energy throu [#permalink]

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30 Apr 2013, 08:16
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, cannot be made less risky.

I approached the question by finding the conc - renewable sources will be less risky than non renewable resources such as gas,oil, coal etc whose prices fluctuate as per availability.

Now if I can make the energy from non-renewable sources less risky I am home , but the answer choice adds some external information which acc to powerscore CR is not allowed. Please help where I am going wrong ?

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

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30 Apr 2013, 08:44
Go for C

The utility company believes that switching over to renewable resources like solar or wind is a good plan because it assumes that the climate will not change or it will be predictable and there will be no fluctuation in the supply .....just as in case of oil and natural gas.

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

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30 Apr 2013, 17:14
deepri0812 wrote:
I approached the question by finding the conc - renewable sources will be less risky than non renewable resources such as gas,oil, coal etc whose prices fluctuate as per availability.

Now if I can make the energy from non-renewable sources less risky I am home , but the answer choice adds some external information which acc to powerscore CR is not allowed. Please help where I am going wrong ?

Hi deepri0812
As far as I know, you selected E and you're asking why E is wrong?

This is assumption question, the most important thing is conclusion. What is conclusion here? (1) renewable energy sources will provide stable energy supplies at low cost OR (2) nonrenewable energy sources are very risky? Clearly, the conclusion is the former sentence. If it's true, what makes these renewable sources more stable ==> the weather pattern must be consistent and predictable. ==> C is correct.

How about E. E says "Obtaining energy from nonrenewable sources, such as gas, oil and coal, cannot be made less risky". It also means Obtaining energy from nonrenewable sources in the future can be made as risky as it can be made now. This is just the premise in the stimulus, how it can be an assumption? If you don't believe, negate E.

Obtaining energy from nonrenewable sources, such as gas, oil and coal, CAN BE MADE less risky. It doesn't help anything to conclude renewable energy sources are stable. Hence, E is wrong.

Take away
- Finding conclusions in Assumption question is the most important.
- Negation technique.

Hope it helps.
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Re: In response to the increasing cost of producing energy [#permalink]

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30 Apr 2013, 20:20
All duplicate threads on this topic have been merged.

Please check and follow the Guidelines for Posting in Verbal GMAT forum before posting anything in the forum.

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

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30 Apr 2013, 20:47
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I see a lot of good posts on this thread and quite a number of similar explanations for the correctness of Option C.

However, as I look at the explanations given, I can see that they are not accurate. Most of the explanations revolve around the last line of the passage i.e.

"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 reasoning is that since renewable sources are less risky than nonrenewable sources whose prices can fluctuate dramatically, the assumption inbuilt is that the prices of renewable sources will be stable. This is an incorrect assumption. The only assumption is that the prices of renewable sources will be less fluctuating than nonrenewable sources; not that the prices of renewable sources will not fluctuate at all.

But then, how come Option C is the answer?

The answer is that you need to look at the second last statement of the passage - which also happens to be the claim of the utility companies but conveniently ignored by almost all of us in the analysis. Look at the question stem - it specifically talks about the claim of the utility companies. Both the second last and last statements of the passage are claims of the utility companies. We just cannot take second last statement as a given fact - it is a claim, which needs to be evaluated in this question.

So, what is the second last statement saying?

"The utility companies claim that although these sources require significant initial capital investment, they will provide stable energy supplies at low cost."

Now, tell me what is the assumption in the above statement?

The answer is option C. Because unless weather patterns are consistent and predictable, the renewable energy sources will not provide stable energy supplies.

That's it. The answer is quite simple to understand if we look at this second last statement. Isn't it?

Hope this helps a bit

Thanks,
Chiranjeev
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Re: In response to the increasing cost of producing energy throu [#permalink]

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30 Apr 2013, 20:52
deepri0812 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?

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, cannot be made less risky.

I approached the question by finding the conc - renewable sources will be less risky than non renewable resources such as gas,oil, coal etc whose prices fluctuate as per availability.

Now if I can make the energy from non-renewable sources less risky I am home , but the answer choice adds some external information which acc to powerscore CR is not allowed. Please help where I am going wrong ?

First thing to find out: what is the claim of the utility companies? Answer: "they (renewable energy sources) will provide stable energy supplies at low cost".

Point to note: claim of the utility companies is not "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."
First and last line in the argument are author's statements. Only second line has the claim of the utility companies.

A) This statement does not provide any information on whether renewable energy sources will provide stable energy supplies at low cost. Wrong.
B) Out of scope as the claim does not have the concern on traditional energy sources. Rather the concern is on achieving low cost from renewable energy sources. Wrong.
C) Wind and solar power is dependent on weather and nature. This option is correlated with renewable energy sources. Right option.
D) This point already addressed in the utility companies' claim -- initial capital investment must be inclusive of required technology cost and stable low cost includes operational cost. Hence it is not an assumption. Wrong.
E) This is also out of scope as the claim does not have the concern on traditional energy sources. Rather the concern is on achieving low cost from renewable energy sources. Wrong.

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

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30 Apr 2013, 21:04
egmat wrote:
I see a lot of good posts on this thread and quite a number of similar explanations for the correctness of Option C.

However, as I look at the explanations given, I can see that they are not accurate. Most of the explanations revolve around the last line of the passage i.e.

"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 reasoning is that since renewable sources are less risky than nonrenewable sources whose prices can fluctuate dramatically, the assumption inbuilt is that the prices of renewable sources will be stable. This is an incorrect assumption. The only assumption is that the prices of renewable sources will be less fluctuating than nonrenewable sources; not that the prices of renewable sources will not fluctuate at all.

But then, how come Option C is the answer?

The answer is that you need to look at the second last statement of the passage - which also happens to be the claim of the utility companies but conveniently ignored by almost all of us in the analysis. Look at the question stem - it specifically talks about the claim of the utility companies. Both the second last and last statements of the passage are claims of the utility companies. We just cannot take second last statement as a given fact - it is a claim, which needs to be evaluated in this question.

So, what is the second last statement saying?

"The utility companies claim that although these sources require significant initial capital investment, they will provide stable energy supplies at low cost."

Now, tell me what is the assumption in the above statement?

The answer is option C. Because unless weather patterns are consistent and predictable, the renewable energy sources will not provide stable energy supplies.

That's it. The answer is quite simple to understand if we look at this second last statement. Isn't it?

Hope this helps a bit

Thanks,
Chiranjeev

The problem or confusion in a nutshell:
First and last line in the stimulus are author's statements. Only the second line in the stimulus has the claim of the utility companies. However, because of the argument structure, many people are treating the last line as the claim of utility companies and thus the wrong answers are considered as right.

Once the actual claim of the utility companies becomes clear, answer to the question becomes very easy to find.

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

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27 Aug 2013, 03:08
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.

In this question:
Premise: 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

Conclusion 1: The utility companies claim that although these sources require significant initial capital investment, they will provide stable energy supplies at low cost.

Conclusion 2: 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.

Read: Conclusion 2 + Therefore, Conclusion 1. (Therefore test)

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

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07 Nov 2013, 04:03
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, cannot be made less risky.

Source: gmatclub compilation - CR 700-800 level practice questions

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

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07 Nov 2013, 04:20
nikhil.jones.s wrote:
Source: gmatclub compilation - CR 700-800 level practice questions

Already discussed mate.. You can find it here-------> http://gmatclub.com/forum/in-response-to-the-increasing-cost-of-producing-energy-46580.html#p495719

Please search the forum before posting, thanks ... All the questions in that list would have been discussed..
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Re: In response to the increasing cost of producing energy [#permalink]

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29 Dec 2014, 02:11
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Re: In response to the increasing cost of producing energy [#permalink]

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01 Jul 2015, 06:29
Hey folks, reviving this old question to get some clarity. I got the answer as C as well using much of the methods in this thread. But there is still one thing missing. We say weather patterns are stable and predictable as answer but there is no link between this and the renewable energy sources in the passage. We are using outside information for this. Isnt that kind of not expected on GMAT (and often a trap)? Or should we just says this is an ill-framed question and move on?

Cheers!

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

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11 Jul 2015, 16:43
dahcrap wrote:
Tough call between A and C. I tilt towards C though

It is not tough. A talks about the demand side but we are concerned about the supply side of the renewable energy. So, A is out of scope.

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

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24 Nov 2015, 20:31
tarek99 wrote:
I chose E as my answer. If you negate option E, it will weaken the argument. Here's how to do it:

e) Obtaining energy from nonrenewable sources, such as gas, oil and coal, CAN be made less risky

by changing from "cannot" to "can", the negated result will weaken the argument big time, so this must be the correct answer.

I thought betn C and E, finally selected C, E is wrong, coz the argument primarily concerns with 'R/E not being risky' and not with NR/Energy becoming less risky.

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

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25 Nov 2015, 12:15
tarek99 wrote:
I chose E as my answer. If you negate option E, it will weaken the argument. Here's how to do it:

e) Obtaining energy from nonrenewable sources, such as gas, oil and coal, CAN be made less risky

by changing from "cannot" to "can", the negated result will weaken the argument big time, so this must be the correct answer.

You have to check exactly what is being asked.
Look at the last sentence:
"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."

It's not talking if the way to obtain the energy is less risky in one or another
It says about the AVAILABILITY of the energy.

What depends the availability of those king of energy sources? The weather.

I hope its clear.

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

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30 Nov 2015, 11:59
dahcrap wrote:
Tough call between A and C. I tilt towards C though

Not really... A doesnt lead to lower prices...

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

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09 Dec 2015, 08:10
mm007 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.

My answer is E. Let's see:
A. Off topic since it is not talk of the topic.
B.Offtopic for the same reason-future implication.
C.We will see
D.Off the conclusion. Only talks with premises.
E. We will see.

Now look at the gap between conclusion and premises. So, what is the unfamiliar term not seen exactly in the premises? "less risky"..never seen in the premises. Also, "fluctuate" in the conclusion never seen in the premises, though 'stable' can oppositely represents it." Only stable ..at low cost" found in the premises. So, " providing stable energy at low cost' is termed as "less risky ". The assumption should hit that gap so that those two terms can be same thing.
The option C is good candidate, though using whether in assumption question unless evaluation one is awkward. Less risky represents consistant and predictable. Also, fluctuate is opposite if consistent and predictable. The problematic word is pattern which is not clear enough. The task of assumption is to make the argument more clear so that conclusion can be better understood. But , here understanding what pattern means here needs another complication.
On the other hand, option E clearly touches the word'risky' which was needed to be clarified.
Still, confused between C and E. Experts pl. help!
One correction: due to responding from mobile device I saw weather as whether,lol. If it is weather patterns, it should be off topic. So, my answer is E.

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

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09 Jul 2016, 12:57
Why not D ? If D is invalid, then question of cost efficient method goes away right?

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Re: In response to the increasing cost of producing energy   [#permalink] 09 Jul 2016, 12:57

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