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# In response to the increasing cost of producing energy through traditi

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

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Updated on: 08 Sep 2018, 02:20
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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.

This question is part of the GMAT Club Critical Reasoning : Assumption" Revision Project.

Originally posted by mm007 on 03 Jun 2007, 18:57.
Last edited by Bunuel on 08 Sep 2018, 02:20, edited 3 times in total.
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Re: In response to the increasing cost of producing energy through traditi  [#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 through traditi  [#permalink]

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19 Jul 2008, 07:03
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priyankur_saha@ml.com 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. -> out of scope.eliminate
B No new deposits of gas, oil, and coal will be discovered in the near future.-> the new approach is due to fluctuation in availability not due to absence of resources of conventional fuels sources.Even if we get reserves and they get exhausted then this assumption proves wrong.Eliminate.
C Weather patterns are consistent and predictable. -> perfect since the whole article talks about going for renewable energy source due to its stable availability.Hence lets do a negation test : negate this statement and see.Weather is fluctuating and unpredictable then how are we supposed to get sunshine and wind at a stable level to harness energy.argument falls apart then.Hence this i the presupposition in the argument.IMO (C)
D The necessary technology for conversion to wind and solar power is not more expensive than the technology needed to create energy through combustion. -> its already said in passage that initial costs are high .these might be applicable to this clause.hence its not assumption
E Obtaining energy from nonrenewable sources, such as gas, oil and coal, cannot be made less risky. -> its not that obtaining energy from gas,oil and coal is risky.its the sources availabilty .eliminate

I took 3mins to solve it but still went wrong...!!

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

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29 Aug 2008, 17:58
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Just now I got why my answer B is incorrect and C is correct. Hint-reread the question again, it doesnt ask what is the assumption of the argument, rather question is what utility companies assume. In that context C is the best answer.

I freq noticed that many times in the CR, to create tough/tricky question test makers changes the frame of the question from the argument prespective to some third party prespective. Such as-

Head of neigbourhood watch: values of the houses are declines since the opening of the bus stand near the community. People are increasingly unwilling to buy house in the community near to the bus stand.

head of transportation: Values are declining not due to bus stand but due to increasing crime rate in the community. So police should be more active in the community area.

Question.. head of neigbourhood watch must reply which of the following to counter the response of the head of the trasportation?

A> Crime rates are increasing since the opening of the bus stand, specially in the night.
B> Many people are unwilling to buy houses near to the bus stand, reason bus stand often makes more noises in the night.

Hope this will help for people like me, who often misread questions..
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Re: In response to the increasing cost of producing energy through traditi  [#permalink]

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25 Feb 2011, 09:30
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Did you find D more attractive? Lets look at claim-
"The utility companies claim that although these sources require significant initial capital investment, they 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.

Two examples are cited in the arg -
traditional resources -> example is combustion
renewable energy resources -> example is chiefly wind and solar power

I dont think above two examples even represent the broad scope of "traditional" Vs "renewable energy resources". I mean comparing "just" these will not help unless you compare the whole. I think the utility companies scope is broader hence D cannot support the argument. However C is what we need for "stable" supply of energy. And if the weather patterns cannot be predicted, the argument collapses - the prices now will fluctuate for the renewable resources. Hence C.
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Re: In response to the increasing cost of producing energy through traditi  [#permalink]

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25 Feb 2011, 09:48
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I think the "negate the assumption" technique solves this one.

A) If the public does not embrace the project, utility companies can still keep their project.
B) If deposits of gas, oil or coal are found, the companies can still use renewable energy.
C) If weather patterns are not consistent and predictable, a month without wind and sun would undermine their project.
D) If the technology is expensive but they want to invest, there is no problem. They will lose money but will be able to achieve their goal, which is to rely completely on renewable energy sources.
E) Again, if obtaining energy from those sources can be made less risky, the companies can still complete their project.

The only necessary assumption is C.
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Re: In response to the increasing cost of producing energy through traditi  [#permalink]

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26 Feb 2015, 03:17
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Let me give you my 2 cents

We identify this to be an assumption question because of the word presupposes. This means that we find out an answer choice that links the argument's conclusion and premise or in simple terms supports the claim in this case.

Claim : The renewable energy sources will provide a STABLE energy source because the Non Renewable energy sources will fluctuate based on availability.

The assumption therefore could be that the renewable energy sources such as water WILL BE AVAILABLE always thereby providing a STABLE source of power.

Let's look at the Options now.

A - Nothing can be assumed about the Public's reaction.

B - This could be the assumption - However this option only talks about the near future.

C - This option provides support for the contention that water will always be available and therefore will make a stable source.

Hence OA : C

Thanks,

Saikiran Dudyala
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Re: In response to the increasing cost of producing energy through traditi  [#permalink]

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21 Mar 2015, 07:32
This question is part of the GMAT Club Critical Reasoning : Assumption" Revision Project.
• The public will embrace the development of wind and solar power.
We should not assume anything about the public. They are not even in consideration.

• No new deposits of gas, oil, and coal will be discovered in the near future.
The pre-assumption to this assumption is that new deposits of gas, oil, and coal will stabilize prices. Those are two leaps in logic that we need to make here, which isn't a bad thing but there may be a better option further below.

• Weather patterns are consistent and predictable.
If weather patterns are not consistent and predictable, it means that they are not providing a constant source of energy, which leads to a collapse of the claim they are trying to make. This claim is directly tied to the problem with no pre-assumptions.

• The necessary technology for conversion to wind and solar power is not more expensive than the technology needed to create energy through combustion.
I believe this is addressed to some extent "sources require significant initial capital investment..."

• Obtaining energy from nonrenewable sources, such as gas, oil and coal, cannot be made less risky.
It's not obtaining the renewable sources that's risky, it's the continuous production of energy that is considered risky
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In response to the increasing cost of producing energy through traditi  [#permalink]

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29 Mar 2015, 19:50
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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: *700* In response to the increasing cost  [#permalink]

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30 Sep 2016, 23:51
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C is indeed the correct response. To get there, we must figure out exactly what the utilities companies claim -

Renewable sources --> Stable energy at low cost (this claim is mentioned in the penultimate sentence of the argument).

A - Not relevant. Whether the public embraces these renewable sources has no impact on the companies' claim - stable energy at low cost. The claim talks about the supply side of things, whereas this answer option deals with the demand.
B - This has no impact on the claim that 'renewable sources will be able to provide stable energy at low cost'.
C - Correct answer. Try negating this - weather patterns will not be consistent. This destroys the claim that renewable energy will be a stable source of energy.
D - This option provides no new information. We already know that initial investment (that would involve the cost of conversion) is significantly high. Assumptions must be unstated. We can also try negating this -- conversion technology is more expensive than technology used to create energy through combustion. How much more expensive? If it is expensive only by 0.1% then certainly the claim will not be weakened.
E - this has no bearing on the claim that - 'renewable sources will be able to provide stable energy at low cost'.
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Re: In response to the increasing cost of producing energy through traditi  [#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: CR Revision: In response to the increasing cost of producing energy  [#permalink]

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07 May 2017, 10:38
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Here is additional explanation for C:
I initially thought that it was wrong because companies might still be able to have reliable supply of energy from renewable sources even though the sources are unstable. If this was the case, situation described in C would be of no importance. However, we are given a clue that reliability of energy source matters for the supply of electricity:
Quote:
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 it is the case for energy made from non-renewable sources, it should also be the case for energy gained from renewable sources.
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Re: In response to the increasing cost of producing energy through traditi  [#permalink]

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14 Feb 2018, 13:38
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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.

PREMISE: Many investing in renewables (to save \$)
PREMISE: Renewables need big investment, but energy is stable/cheap
CONCLUSION: Renewables less risky

Let's apply the NEGATION TECHNIQUE to see which answer choice, when negated, destroys the conclusion

(A) The public will NOT embrace the development of wind and solar power.
Does this destroy the conclusion that Renewables less risky?
Not really. The conclusion is all about the ides that Renewables are less risky.
ELIMINATE A

(B) New deposits of gas, oil, and coal WILL be discovered in the near future.
Does this destroy the conclusion that Renewables less risky?
No. The argument states that it's the fluctuation of gas, oil, and coal prices that makes renewables more attractive.
ELIMINATE B

(C) Weather patterns are NOT consistent and predictable.
Does this destroy the conclusion that Renewables less risky?
YES!
If wind and sunlight are not consistent and predictable, then the energy will not be consistent and predictable.
This destroys the conclusion.
KEEP C

(D) The necessary technology for conversion to wind and solar power IS more expensive than the technology needed to create energy through combustion.
Does this destroy the conclusion that Renewables less risky?
No. The passage already states that renewable energies require significant initial capital investment.
ELIMINATE D

(E) Obtaining energy from nonrenewable sources, such as gas, oil and coal, CAN be made less risky.
Does this destroy the conclusion that Renewables less risky?
No. The issue here isn't that obtaining energy from oil and gas is risky. Is the availability (and the resulting price fluctuations) that is risky.
ELIMINATE E

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07 Sep 2018, 09:36
What is the conclusion in this question? I considered cost-cutting as the main conclusion. The risky part is a consequence anyhow. I chose D, so that cost has to be low.
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In response to the increasing cost of producing energy through traditi  [#permalink]

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10 Sep 2018, 05:20
I think the two words 'less risky' is very tricky because here risk is not in terms of the price but in terms of availability of the energy source.Hence option C is correct.

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10 Sep 2018, 05:43
Author concludes that non renewable sources will be less risky based on the assumption that they are available always and utility companies can use them whenever required, but that may not be necessarily true.
Hence C is the necessary assumption, if C were not true then it may not be necessary that renewable sources would be less risky than non renewable sources.

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

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21 Feb 2019, 09:32
Hi,

I read the discussion but still could not figure out why the answer is C and not D. The conclusion says the renewable energy sources will provide stable energy at low cost. The conclusion mentions both i.e stable energy source and low cost.

The question I have is, in the stimulus it is mentioned that the initial investment is high incase of the renewable energy sources but we are not given data about the recurring expenses. What if, the technology is such that it needs higher recurring expenses ? In that case the conclusion breaks down that renewable energy sources will provide renewable energy at a low cost. The reason I choose answer D is because it spoke about the technology cost. And I inferred from that both the initital investment and the recurring expenses. The stimulus only speaks about the initial investment.

Also, with regards to the assumptions that weather patterns are consistent and predictable - say even if they are not predictable then the different kind of renewable energy sources like solar, wind, geothermal, nuclear will balance for each other.

Please let me know where I am going wrong.

Thank You
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Re: In response to the increasing cost of producing energy through traditi  [#permalink]

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20 Sep 2019, 23:08
The question quite clearly asks you to find the assumption of the claim made by the energy companies.

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

B is incorrect because it talks to the wrong conclusion in that it talks down the potential for existing supplies to improve
C is correct as it underpins the leg of the argument - that energy is stable and can be supplied at low cost.
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Re: In response to the increasing cost of producing energy through traditi   [#permalink] 20 Sep 2019, 23:08
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