GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 17 Jul 2018, 04:46

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Technological improvements and reduced equipment costs have

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
Senior Manager
Joined: 12 Oct 2008
Posts: 488
Technological improvements and reduced equipment costs have [#permalink]

### Show Tags

15 Feb 2009, 22:08
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

Technological improvements and reduced equipment costs have made converting solar energy directly into electricity far more cost-efficient in the last decade. However, the threshold of economic viability for solar power (that is, the price per barrel to which oil would have to rise in order for new solar power plants to be more economical than new oil-fired power plants) is unchanged at thirty-five dollars.

Which of the following, if true, does most to help explain why the increased cost-efficiency of solar power has not decreased its threshold of economic viability?

(A) The cost of oil has fallen dramatically.
(B) The reduction in the cost of solar-power equipment has occurred despite increased raw material costs for that equipment.
(C) Technological changes have increased the efficiency of oil-fired power plants.
(D) Most electricity is generated by coal-fired or nuclear, rather than oil-tired, power plants.
(E) When the price of oil increases, reserves of oil not previously worth exploiting become economically viable.

--== Message from GMAT Club Team ==--

This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.
Manager
Joined: 10 Jan 2009
Posts: 97
Re: CR: Technological improvements [#permalink]

### Show Tags

15 Feb 2009, 23:07
Technological improvements and reduced equipment costs have made converting solar energy directly into electricity far more cost-efficient in the last decade. However, the threshold of economic viability for solar power (that is, the price per barrel to which oil would have to rise in order for new solar power plants to be more economical than new oil-fired power plants) is unchanged at thirty-five dollars.

Which of the following, if true, does most to help explain why the increased cost-efficiency of solar power has not decreased its threshold of economic viability?

(A) The cost of oil has fallen dramatically.
(B) The reduction in the cost of solar-power equipment has occurred despite increased raw material costs for that equipment.
Out of scope.
(C) Technological changes have increased the efficiency of oil-fired power plants.
Hold it.
(D) Most electricity is generated by coal-fired or nuclear, rather than oil-tired, power plants.
Doesn't make any difference to the argument here.

(E) When the price of oil increases, reserves of oil not previously worth exploiting become economically viable.
Yes, but but doen't really explain why the price of oil might differ for this reason.
Senior Manager
Joined: 14 Mar 2007
Posts: 273
Location: Hungary
Re: CR: Technological improvements [#permalink]

### Show Tags

16 Feb 2009, 04:05
I went for C.
VP
Joined: 18 May 2008
Posts: 1181
Re: CR: Technological improvements [#permalink]

### Show Tags

16 Feb 2009, 04:48
my choice is C though I dnt find any reason to reject A. Can sum 1 throw light on this?
Director
Joined: 14 Aug 2007
Posts: 695
Re: CR: Technological improvements [#permalink]

### Show Tags

16 Feb 2009, 06:31
ritula wrote:
my choice is C though I dnt find any reason to reject A. Can sum 1 throw light on this?

IMO, A is wrong because 'the threshold of economic viability for solar power is unchanged at thirty-five dollars.'
if threshold is unchanged, something other than drop in price of oil should have happened.
Senior Manager
Joined: 26 May 2008
Posts: 412
Schools: Kellogg Class of 2012
Re: CR: Technological improvements [#permalink]

### Show Tags

16 Feb 2009, 09:10
I'll still go with A

Cheers,
Unplugged
VP
Joined: 18 May 2008
Posts: 1181
Re: CR: Technological improvements [#permalink]

### Show Tags

16 Feb 2009, 09:57
yes that is a valid point
alpha_plus_gamma wrote:
ritula wrote:
my choice is C though I dnt find any reason to reject A. Can sum 1 throw light on this?

IMO, A is wrong because 'the threshold of economic viability for solar power is unchanged at thirty-five dollars.'
if threshold is unchanged, something other than drop in price of oil should have happened.
Manager
Joined: 04 Jan 2009
Posts: 229
Re: CR: Technological improvements [#permalink]

### Show Tags

16 Feb 2009, 10:26
ritula wrote:
my choice is C though I dnt find any reason to reject A. Can sum 1 throw light on this?

The threshold of economic viability is 35 dollars; this is true regardless of whether oil prices rise or fall. The oil prices have to rise above 35 dollars for solar to become economically viable regardless of the improvement in efficiency of solar as a technology.

I eliminated all the other choices and went for C.

A is not valid since the price of oil is one thing but it does not impact the threshold mentioned in the question statement.

--== Message from GMAT Club Team ==--

This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.

_________________

-----------------------
tusharvk

Re: CR: Technological improvements   [#permalink] 16 Feb 2009, 10:26
Display posts from previous: Sort by

# Technological improvements and reduced equipment costs have

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

Moderators: GMATNinjaTwo, GMATNinja

# Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.