United States manufacturers currently produce most of the world's sola

Question

Which of the following most logically completes the argument?

United States manufacturers currently produce most of the world's solar-power generators—most of which are exported to Europe. However, European manufacturers are emerging and probably will ultimately capture much of the European market. The United States government is funding initiatives intended to encourage use of solar power within the United States. If these initiatives succeed in increasing the demand for solar-power generators in the United States, United States manufacturers will probably maintain significant production levels, since __________.

(A) some United States manufacturers have been substantially increasing their output over the last several years

(B) the efficiency of solar-power generators in converting energy from the Sun into electric power is not improving as fast as it once did

(C) just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States

(D) European governments are currently undertaking initiatives to stimulate the use of solar power within Europe

(E) the current market for solar-power generators in the United States is very limited

My Analysis:

Info – 1: United States manufacturers currently produce most of the world's solar-power generators--most of which are exported to Europe.

Info – 2: However, European manufacturers are emerging and probably will ultimately capture much of the European market. (Assumption – It will reduce the US exports to Europe)

Info – 3: The United States government is funding initiatives intended to encourage use of solar power within the United States. If these initiatives succeed in increasing the demand for solar-power generators in the United States, United States manufacturers will probably maintain significant production levels, since __________.

Analysis: Blank space is preceded by since which is the premise indicator, hence we should identify the premise that support the argument conclusion that “United States manufacturers will probably maintain significant production levels”.

Pre-think of answer: There is scope for increase in sales in US market.

Hence I selected answer choice E as it says the current market is limited and with US govt. initiatives it will increase.

But the correct answer choice is C and I am not able to identify the reason for the same.

Please explain what I am missing in my approach.

Narenn · Accepted Answer

Hi Dipesh, You did perfect job while analyzing the interrelation among the facts, but just made a subtle error at the end, while analyzing the conclusion.

I am giving below you analysis.

Fact – 1: United States manufacturers currently produce most of the world's solar-power generators--most of which are exported to Europe. 
Fact – 2: However, European manufacturers are emerging and probably will ultimately capture much of the European market. (Assumption – It will reduce the US exports to Europe)
Fact – 3: The United States government is funding initiatives intended to encourage use of solar power within the United States.
 
 Conclusion :- If these initiatives succeed in increasing the demand for solar-power generators in the United States, United States manufacturers will probably maintain significant production levels,-------------

We can see in the 3rd fact that Author has stated that the US Govt has taken initiative to boost up sales of solar power in the US. This clearly indicates that the demand for solar power generators is currently not high enough to accommodate the produce of US generator manufacturers. (This is what Choice E says)

Then Author has concluded that  if govt's initiatives succeed in increasing the demand for solar power generators, US manufacturers will probably maintain significant production level.  Here the author has assumed that  the increased demand of solar power gensets will be fulfilled by supplies of US manufacturers.  So next logical premise would eliminate the possibility of fulfillment of increased demand by sources other than US manufacturers. Choice C does that job and hence is the correct answer.

KarishmaB · Answer

There are 4 aspects here:
US manufacturers, US market, European manufacturers, European market

Currently, US manufacturers make and export to European market. (So supply is from US and demand is in Europe.)

Now European manufacturers are emerging and will likely capture European market. (So Europe will supply to Europe demand)

The US government is encouraging US market to increase demand.

If these initiatives succeed US manufacturers will probably maintain significant production levels, since...

The argument is saying that if demand in US increases, US manufacturers will likely maintain a good supply. Why? Why is it that like European market, US market will not satisfy its demand from Europe? If European manufacturers are emerging, it is possible that they not only capture European market but US market too if US market demand increases. We need to give a reason why this may not happen. A reason why US markets may prefer to buy from US manufacturers.

(A) some United States manufacturers have been substantially increasing their output over the last several years

Doesn’t tell us why they would need to keep production high.

(B) the efficiency of solar-power generators in converting energy from the Sun into electric power is not improving as fast as it once did

This is the same for all manufacturers. It doesn't say why US manufacturers will maintain their production levels. It doesn't say why if US demand increases, US manufacturers will likely satisfy it.
 saman283  - We do not know how increase in efficiency affects demand. Does higher efficiency increase demand (more people want to buy) or lower demand (once bought, people don't need to buy again and again)?

(C) just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States

Correct. This is why US manufacturers may be better able to satisfy demands of the US market.

(D) European governments are currently undertaking initiatives to stimulate the use of solar power within Europe

Irrelevant. European manufacturers are likely to capture European market - whatever its size.

(E) the current market for solar-power generators in the United States is very limited

That is already given. It doesn't help.

Answer (C)

Carcass · Answer

I'll try to help you dissecting your reasoning, maybe is useful to you and other students

you say

My Analysis:

Info – 1: United States manufacturers currently produce most of the world's solar-power generators--most of which are exported to Europe.

OK

Info – 2: However, European manufacturers are emerging and probably will ultimately capture much of the European market. (Assumption – It will reduce the US exports to Europe)

OK

Info – 3: The United States government is funding initiatives intended to encourage use of solar power within the United States. If these initiatives succeed in increasing the demand for solar-power generators in the United States, United States manufacturers will probably maintain significant production levels, since __________.

After since we need an answer that strenghten the argument in this case.
 
Analysis: Blank space is preceded by since which is the premise indicator, hence we should identify the premise that support the argument conclusion that “United States manufacturers will probably maintain significant production levels”.

Pre-think of answer: There is scope for increase in sales in US market.

Not properly true, because if you have a competitive advantage you can still maintain your market share and still have your sales constant respect your competitors

Hence I selected answer choice E as it says the current market is limited and with US govt. initiatives it will increase.

But the correct answer choice is C and I am not able to identify the reason for the same.

Please explain what I am missing in my approach.

Which of the following most logically completes the argument?

(A) some United States manufacturers have been substantially increasing their output over the last several years

what is happened until now is not our concern

(B) the efficiency of solar-power generators in converting energy from the Sun into electric power is not improving as fast as it once did

the efficiency is not our concern

(C) just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States

US manufcturers want the european market but now maybe is not the same scenario as before. the US M will maintain significant production levels only and only if they have a consistent market share to sell solar power  aka competitive advantage

(D) European governments are currently undertaking initiatives to stimulate the use of solar power within Europe
 
we already know this from the statement

(E) the current market for solar-power generators in the United States is very limited

we have NOT enough information to say this. where did you see this or infer from the stimulus ?? nowhere. moreover, we are talking about the current market BUT we are concerned about the FUTURE market share

Regards

tusharGupta1 · Answer

Not convinced with ur explanation. Do you have any other reason in support of ur answer??

Archit143 · Answer

Dear Tushar
Will be happy if my post helps you!!!

Think from the point of view that incase the USA consumers start aligning themselves to the European models. In that case incresed production of USA companies will fail in getting a client.
So Option C is a full proof answer to the question at hand.

Archit

Hit kudos if my post helps!!!

ankurgupta03 · Answer

Bumping this question, any comments on why E is not the answer.
What I can think of is that E is implicitly stated in the premise, hence should not be considered.

But still, I am not pretty convinced

TGC · Answer

If these initiatives succeed in increasing the demand for solar-power generators in the United States, United States manufacturers will probably maintain significant production levels, since __________.

If X, then Y since Z

But we have already stated (E) in X so why would we need (E) again in Z, we need something else to fill Z to support the US M.

(C) does that

shank001 · Answer

US Mfgs produce most of the solar power generators and most of them are exported to Europe
European mfgs are coming up and will capture much of the european market.

US Govt is trying to increase demand for solar power generators in US.
Conclusion - US MFGs might be able to maintain prod levels if demand increases in US

Correct answer choice should explain what happens when the demand increases. 
Will the demand be fulfilled by US MFGs - maintain productivity
or
Will the demand be fulfilled by European MFGs - US MFGs cannot maintain productivity even when the demand increases

(A) some United States manufacturers have been substantially increasing their output over the last several years -  Incorrect. Does not explain what happens when the demand increases.

(B) the efficiency of solar-power generators in converting energy from the Sun into electric power is not improving as fast as it once did -  Incorrect. we are not concerned about technology

(C) just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States -  Correct. Explains why US MFGs will be able to maintain prod level when the demand increases.

(D) European governments are currently undertaking initiatives to stimulate the use of solar power within Europe -  Incorrect. does not answer what will happen in US?

(E) the current market for solar-power generators in the United States is very limited -  Incorrect. So what ? This does not explain what will happen when the demand increases. Even if the current market is limited and the demand increases, we don't know for sure whether US MFGs will be able to sell their products. This is irrelevant.

maggie27 · Answer

Bumping it up yet again. Guys please help! Why not E and how C?

aditya8062 · Answer

C is preferred because it is logically parallel to analogy that is presented in the passage. 
 the premise states :   European manufacturers are emerging and probably will ultimately capture much of the European market. ----->implying that "European manufacturers" enjoy some advantage of home ground . C works on this logic and hence is a better answer

gmatdummy01 · Answer

Here is my 2 cents. 
This is an Inference question, therefore, we would need an answer that   MUST BE TRUE  , within the same logic as the clause that precedes it. In this prompt, we have   If these initiatives succeed in increasing the demand for solar-power generators in the United States, United States manufacturers will probably maintain significant production levels, since __________.  
In other words, we have to justify that the US’ initiatives will succeed because of a certain reason

To summarize, 
Fact 1 – US produces the most SPG and exports this to Europe
Fact 2 – Eur markets are emerging, and Eur producers are as well
 Therefore, US might lose demand in Eur
Fact 3 – Initiatives are underway to increase demand in US.

Need to prove – US will succeed

(A) some United States manufacturers have been substantially increasing their output over the last several years   
- does not necessarily suggest that demand will be sustained as the Eur producers might overtake US when the markets have established themselves
  (B) the efficiency of solar-power generators in converting energy from the Sun into electric power is not improving as fast as it once did  
- Does not follow in the clause above, if anything, this suggests that the market for solar-power generators as a whole is not feasible in any geographical location
  (C) just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States  
- CORRECT. Suggests that the market can be feasible in the US due to the competitive advantage 
- Only answer choice that logically follows from the preceding clause. The other answer choices do not support that there can be a market in the US
  (D) European governments are currently undertaking initiatives to stimulate the use of solar power within Europe  
- Does not support preceding clause, also does not suggest a result that may follow from increasing the initiatives in the US. If the same is applied in Europe, then so what?
  (E) the current market for solar-power generators in the United States is very limited  
- It may be true, however, it does not support the phrase that United States manufacturers will probably maintain significant production levels. It does not result to this desired outcome, therefore, we cannot accept this answer.

Nina1987 · Answer

Why isnt B relevant? If efficiency increases, it will hamper the demand for generator even if the demand for solar power increases

colorblind · Answer

I had the same reasoning, but nowhere in the passage is efficiency mentioned.
The passage talks about European and US manufacturers. European manufactures are emerging and replacing US manufacturers in Europe. What if the European manufacturers start exporting to the US and the markets in the US favor European manufactured solar generators?? Wouldn't that mean the end of US manufactures?
Hence Option C: Just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States.

kannu44 · Answer

If these initiatives succeed in increasing the demand for solar-power generators in the United States, United States manufacturers will probably maintain significant production levels, since __________.

(C) just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States
(E) the current market for solar-power generators in the United States is very limited

lets suppose requirement for power generators in united state will be more due to government initiative. It doesn't guarantee that requirement will be fulfilled from american manufacturer. If European counterpart are more effective/competitive then they will be preferred . In that case manufacturer will not be able to sustain its current operation level.

only in Case C it is given that united state manufacturer enjoys local advantage similar to European manufacturer in Europe .
It implies that if demand increases due to government initiative united sate manufacturer will be preferred.

JakeRockwell · Answer

Hi everybody,

Need some help with D).If the European demand increases then it is logical to infer that European companies will be busy supplying to Europe than to America right..
This might increase the chances of American companies selling in America.So by this logic D) out to be correct right..?

GMATNinja · Answer

It's true that this fact  might  benefit American companies... as you described, if the European companies are busy supplying to Europe, there  might  be less of a chance that those European companies will compete in America.

But we need an answer choice that  most logically  completes the argument. Think about the sentence we are trying to complete: "If these initiatives succeed in increasing the demand for solar-power generators in the United States, United States manufacturers will probably maintain significant production levels, since __________." The author says that US manufacturers will probably maintain  significant  production if the government succeeds in encouraging the use of solar power in the US. So we need an answer choice that specifically answers the question, "Why will US manufacturers maintain  significant  production if the use of solar power is successfully encouraged in the US?" In other words, if demand increases in the US, will US manufacturers largely fill that demand?

Choice (D)  might  represent a reason why European manufacturers would not export to the US, but that's a pretty big assumption to make. In order for choice (D) to be correct, we'd have to assume that the European manufacturers won't want to export because they are content with the amount of business they have in Europe.... hmm. Maybe the European manufacturers will only want to EXPAND, i.e. to use their profits from Europe to create a global empire. Sure, we can describe a scenario in which choice (D) benefits US manufacturers, but we really have no idea how the European manufacturers would behave in that case.

Choice (C), on the other hand, gives us a specific reason why the US manufacturers would be in a better position to fill the demand in the US than would foreign manufacturers. This certainly suggests that an increase in US demand would cause US manufacturers to maintain significant production.

Choice (C) is a better answer.

sriramsundaram91 · Answer

If these initiatives succeed in increasing the demand for solar-power generators in the United States, United States manufacturers will probably maintain significant production levels, since __________.

(C) just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States

vs

(E) the current market for solar-power generators in the United States is very limited

Note very carefully, increasing demand in(domestic demand inside the country) the united states, The US will probably maintain significant production level... Now look for an option that explains why the US can maintain the production level because of domestic demand and not any other demand.

Option C states " competitive advantages  are enjoyed by the US manufacturers in the US.... which means even if the European market tries to compete in the US, they will lose. Thus when you increase demand locally... you can safely maintain the current production levels because you do not have a competitor"...

aidyn · Answer

Hi, can anyone explain why the answer is not (A)?
My reasoning is: (A) explains  some United States manufacturers have been substantially increasing their output over the last several years . This means the supply of solar-power generators has been increasing to meet the demand from US, Europe, etc.
Should Europe demand decreases, this gap can be filled with increase of US demand due to successful government plan.

This explains why United States manufacturers will probably  maintain  significant production levels.

Is there any loop hole in my reasoning? Would appreciate any enlightenment from the experts.

I understand I might need to assume that  Europe output demand = US output demand , but isn't (C) also assuming that  European manufacturers' competitive advantages in Europe = US manufacturers' competitive advantages in US  ?

GMATNinja · Answer

We know that US manufacturers currently produce most of the world's solar-power generators and that most of those generators are exported to Europe. This describes the  current  situation. We are then told that "European manufacturers  are emerging  and probably  will  ultimately capture much of the European market." Okay, so that would take away much of the European demand for US-made solar generators.

At the same time, "the US government is funding initiatives intended to encourage use of solar power within the United States." If those initiatives succeed, we would expect   US   demand for solar generators to increase.

Who is going to supply the generators to meet that US demand? Will it be the US manufacturers? If so, then those US manufacturers "will probably maintain significant production levels." But what if the emerging European manufacturers end up supplying the solar generators to meet US demand (perhaps the generators made by the new, European manufacturers are better and/or cheaper than the ones made in the US)?

If US manufacturers LOSE their market in Europe and do NOT supply the solar generators to meet future US demand, then we would expect that US manufacturers will NOT maintain significant production levels. So we need some evidence that the US manufacturers would be the ones to supply the solar generators to the US (to meet demand that WOULD likely be created if the initiatives are successful). This is exactly what (C) gives us:

(C) gives us a reason why US manufacturers would be likely to supply the generators to meet future US demand. (A), on the other hand, only gives us information related to the  last several years :

That's nice, but what happens once the US manufacturers LOSE their market share in Europe? And who is going to produce the generators to meet the hypothetical future demand in the US? (A) doesn't help us answer those questions.

(C) is the best answer.

United States manufacturers currently produce most of the world's sola

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United States manufacturers currently produce most of the world's sola

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