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# In response to the increasing cost of producing energy

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Senior Manager
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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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18 Jul 2016, 01:11
marshpa wrote:
Did anyone think about b? Frankly but C has not connection with the argument, I some how feel that c is outside the scope. I think B is the best answer.

The conclusion is not about the costs but the fluctuation in the costs. They are already talking about "the risk" So B can't be the answer.
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Re: In response to the increasing cost of producing energy [#permalink]

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19 Jul 2016, 03:55
target760gmat wrote:
Why not D ? If D is invalid, then question of cost efficient method goes away right?

The claim refferd to is:
" As a result, these sources will be less risky for the utilities than nonrenewable sources".

This claim is about the risk involved in production, not cost effectiveness of the production.

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

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11 Apr 2017, 21:18
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.
Negating answer choice C invalidates the conclusion.
If weather patterns and inconsistent and unpredictable, the power supply will be hampered hence the conclusion that power price will be stable is weakened. Hence C is correct.
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Re: In response to the increasing cost of producing energy [#permalink]

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27 Aug 2017, 01:06
They will provide stable energy supplies at low cost.

For this to be possible they have to know weather consistency .Option C is along the prethink

Weather patterns are consistent and predictable.

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

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27 Aug 2017, 20:14
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.

Many things are happening in this argument 1 The companies wants to reduce their cost of producing energy by utilising renewable resources because they are cheap and abundant .
Renewable resources are cheap and abundant are cheap is an assumption for their plan to work out .
Now coming to second part of the argument the key word here is stable if the supply of the resources is not stable then the companies will not be able to produce constant energy thus their plan will fail .
Now the conclusion also mentions fluctuations of price now prices always fluctuate because of demand and supply
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Re: In response to the increasing cost of producing energy   [#permalink] 27 Aug 2017, 20:14

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