Last visit was: 29 Apr 2026, 03:36 It is currently 29 Apr 2026, 03:36
Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 29 Apr 2026
Posts: 109,963
Own Kudos:
Given Kudos: 105,942
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,963
Kudos: 811,882
 [15]
Kudos
Add Kudos
15
Bookmarks
Bookmark this Post
Most Helpful Reply
User avatar
sayantanc2k
Joined: 14 Dec 2013
Last visit: 09 Dec 2022
Posts: 2,391
Own Kudos:
15,572
 [5]
Given Kudos: 26
Location: Germany
Schools:
GMAT 1: 780 Q50 V47
WE:Corporate Finance (Pharmaceuticals and Biotech)
Expert
Expert reply
Schools:
GMAT 1: 780 Q50 V47
Posts: 2,391
Kudos: 15,572
 [5]
5
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 29 Apr 2026
Posts: 109,963
Own Kudos:
811,882
 [5]
Given Kudos: 105,942
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,963
Kudos: 811,882
 [5]
1
Kudos
Add Kudos
4
Bookmarks
Bookmark this Post
General Discussion
avatar
AndriyBondarenko
Joined: 14 Aug 2015
Last visit: 09 Nov 2015
Posts: 1
Own Kudos:
Posts: 1
Kudos: 2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
Official Solution:

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 __________. 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
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


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.


Answer: C

Why not E? The producers can maintain the production level in case the loss of the European market share is offset by the increased share within USA, which was low and now is planned to get boosted. Where is my mistake?
User avatar
vivekgautam1
Joined: 14 Mar 2015
Last visit: 10 Jun 2016
Posts: 24
Own Kudos:
35
 [3]
Given Kudos: 11
Schools: ISB '18
Schools: ISB '18
Posts: 24
Kudos: 35
 [3]
3
Kudos
Add Kudos
Bookmarks
Bookmark this Post
AndriyBondarenko
Bunuel
Official Solution:

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 __________. 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
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


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.


Answer: C

Why not E? The producers can maintain the production level in case the loss of the European market share is offset by the increased share within USA, which was low and now is planned to get boosted. Where is my mistake?

I am not sure, if the answer at this point of time will help you, but here's my logic:

The line - "If these initiatives succeed in increasing the demand for solar-power generators in the United States" itself indicates that the currently United States has very limited market for solar generators (and that's the reason government trying to promote it by funding initiatives).

So, like Bunuel mentioned - manufacturers in United States will be able to maintain their production level only if the demand for solar generators is not met by any external source.

I hope this helps.
avatar
maitysourav
Joined: 10 Oct 2016
Last visit: 13 Jun 2017
Posts: 3
Posts: 3
Kudos: 0
Kudos
Add Kudos
Bookmarks
Bookmark this Post
why option E is not correct.
avatar
Atbr1602
Joined: 31 Jan 2017
Last visit: 20 Apr 2017
Posts: 3
Own Kudos:
Given Kudos: 1
Posts: 3
Kudos: 3
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Because current market is limited --> so "when these initiatives succeed in increasing the demand" --> the result is "manufacturers will probably maintain significant production levels", can anyone help explain why this logic is wrong?

Thank you!
User avatar
sayantanc2k
Joined: 14 Dec 2013
Last visit: 09 Dec 2022
Posts: 2,391
Own Kudos:
15,572
 [2]
Given Kudos: 26
Location: Germany
Schools:
GMAT 1: 780 Q50 V47
WE:Corporate Finance (Pharmaceuticals and Biotech)
Expert
Expert reply
Schools:
GMAT 1: 780 Q50 V47
Posts: 2,391
Kudos: 15,572
 [2]
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Atbr1602
Because current market is limited --> so "when these initiatives succeed in increasing the demand" --> the result is "manufacturers will probably maintain significant production levels", can anyone help explain why this logic is wrong?

Thank you!

I am not very clear what your query is. Are you asking why D cannot be the answer?

D does not indicate a reason that American manufacturers will be able compete against the European manufacturers. The passage is about why the American manufacturers would be able to maintain production even when European manufacturers emerge. Increasing the demand in Europe may result in more sales by the European companies in Europe, but this outcome does not provide a reason that the European companies would not capture the markets of the American manufacturers.
avatar
siddharthnes
Joined: 30 May 2017
Last visit: 14 Aug 2017
Posts: 1
Given Kudos: 4
Posts: 1
Kudos: 0
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate.
User avatar
umg
User avatar
Current Student
Joined: 18 Jun 2016
Last visit: 26 Jun 2020
Posts: 214
Own Kudos:
681
 [4]
Given Kudos: 111
Location: United States (NY)
GMAT 1: 720 Q50 V38
GMAT 2: 750 Q49 V42
GPA: 4
WE:General Management (Other)
Products:
GMAT 2: 750 Q49 V42
Posts: 214
Kudos: 681
 [4]
3
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Here is another Reason why E is wrong..

E says - the current market for solar-power generators in the United States is very limited.

So, the initiatives by govt. will expand the market and the US companies will not have to downsize their Production due to loss in sales in Europe. BUT, what if the European Manufacturers start focusing on the US markets as well? Then the conclusion drawn by the author would become debatable. C fills in this gap perfectly. If the market in US expands, the US companies will have an advantage over the European or any other companies in the world.
avatar
mananjune
Joined: 11 Feb 2015
Last visit: 20 Apr 2018
Posts: 2
Own Kudos:
8
 [3]
Given Kudos: 1
Products:
Posts: 2
Kudos: 8
 [3]
3
Kudos
Add Kudos
Bookmarks
Bookmark this Post
umg
Here is another Reason why E is wrong..

E says - the current market for solar-power generators in the United States is very limited.

So, the initiatives by govt. will expand the market and the US companies will not have to downsize their Production due to loss in sales in Europe. BUT, what if the European Manufacturers start focusing on the US markets as well? Then the conclusion drawn by the author would become debatable. C fills in this gap perfectly. If the market in US expands, the US companies will have an advantage over the European or any other companies in the world.

In this way, C can also be wrong. Let say out of 100% of solar power generators, 90% are exported to Europe. The remaining 10% of the production is(let say) enough for 50% market share. The competitive advantage also stands now.

The demand in US is limited, and if demand grows to lets say 2x, then also production will have to be stopped as demand still in US is limited(as compared to the production).
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
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 __________. 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
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
Hi Bunuel
This question is from GMATPrep Soft. It is better if you tag it.
Thanks__
User avatar
mSKR
Joined: 14 Aug 2019
Last visit: 10 Mar 2024
Posts: 1,210
Own Kudos:
Given Kudos: 381
Location: Hong Kong
Concentration: Strategy, Marketing
GMAT 1: 650 Q49 V29
GPA: 3.81
GMAT 1: 650 Q49 V29
Posts: 1,210
Kudos: 961
Kudos
Add Kudos
Bookmarks
Bookmark this Post
mananjune
umg
Here is another Reason why E is wrong..

E says - the current market for solar-power generators in the United States is very limited.

So, the initiatives by govt. will expand the market and the US companies will not have to downsize their Production due to loss in sales in Europe. BUT, what if the European Manufacturers start focusing on the US markets as well? Then the conclusion drawn by the author would become debatable. C fills in this gap perfectly. If the market in US expands, the US companies will have an advantage over the European or any other companies in the world.

In this way, C can also be wrong. Let say out of 100% of solar power generators, 90% are exported to Europe. The remaining 10% of the production is(let say) enough for 50% market share. The competitive advantage also stands now.

The demand in US is limited, and if demand grows to lets say 2x, then also production will have to be stopped as demand still in US is limited(as compared to the production).


Your reasoning is not wrong, that's why in the conclusion it says " probably", means whatever the demand is increased , that increased demand needs to be filled by USA manufacturers.
User avatar
achilles229
Joined: 09 Jan 2017
Last visit: 11 Jul 2023
Posts: 5
Own Kudos:
Given Kudos: 101
Location: India
Schools: NUS '25 (A)
GMAT 1: 740 Q50 V40
Schools: NUS '25 (A)
GMAT 1: 740 Q50 V40
Posts: 5
Kudos: 1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Can someone please explain why A is wrong?
avatar
thereisaFire
Joined: 04 Jun 2020
Last visit: 12 Aug 2022
Posts: 72
Own Kudos:
Given Kudos: 209
Location: India
GMAT 1: 660 Q49 V30
GMAT 1: 660 Q49 V30
Posts: 72
Kudos: 14
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi experts AjiteshArun VeritasKarishma GMATNinja

I feel that choice E, which states "the current market for solar-power generators in the United States is very limited", can be a strengthener.

As European Manufacturers are emerging and probably will ultimately capture much of the European market, US manufacturers' proportion in the European markets will decrease. It can be compensated if the US market allows it's own manufacturers to do so, i.e. the circle of people using those generators expands.

Can someone please explain where I am stumbling.
User avatar
KarishmaB
Joined: 16 Oct 2010
Last visit: 28 Apr 2026
Posts: 16,447
Own Kudos:
79,442
 [2]
Given Kudos: 485
Location: Pune, India
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 16,447
Kudos: 79,442
 [2]
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
thereisaFire
Hi experts AjiteshArun VeritasKarishma GMATNinja

I feel that choice E, which states "the current market for solar-power generators in the United States is very limited", can be a strengthener.

As European Manufacturers are emerging and probably will ultimately capture much of the European market, US manufacturers' proportion in the European markets will decrease. It can be compensated if the US market allows it's own manufacturers to do so, i.e. the circle of people using those generators expands.

Can someone please explain where I am stumbling.

Option (E) is not adding anything new to the argument. You are already given that the Govt is encouraging the use of solar power within the United States.
The next sentence further clarifies:
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 argument is concluding that if demand does increase, then US manufacturers will maintain good production levels. We need to give a reason why US demand increase will help US manufacturers. It is so because US manufacturers have certain home country advantages. So likely that an increase in demand in US will be met by them.

Also check here: https://gmatclub.com/forum/united-state ... l#p2799357
User avatar
BottomJee
User avatar
Retired Moderator
Joined: 05 May 2019
Last visit: 09 Jun 2025
Posts: 994
Own Kudos:
Given Kudos: 1,009
Affiliations: GMAT Club
Location: India
GMAT Focus 1: 645 Q82 V81 DI82
GMAT 1: 430 Q31 V19
GMAT 2: 570 Q44 V25
GMAT 3: 660 Q48 V33
GPA: 3.26
WE:Engineering (Manufacturing)
Products:
GMAT Focus 1: 645 Q82 V81 DI82
GMAT 3: 660 Q48 V33
Posts: 994
Kudos: 1,462
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I think this is a high-quality question and I agree with explanation.
User avatar
einstein801
Joined: 23 Jan 2024
Last visit: 18 Feb 2025
Posts: 149
Own Kudos:
Given Kudos: 138
Posts: 149
Kudos: 227
Kudos
Add Kudos
Bookmarks
Bookmark this Post
E should be the answer. Hey IanStewart, GMATNinja, would you be able to confirm this?
User avatar
Gemmie
Joined: 19 Dec 2021
Last visit: 27 Apr 2026
Posts: 484
Own Kudos:
Given Kudos: 76
Location: Viet Nam
Concentration: Technology, Economics
GMAT Focus 1: 695 Q87 V84 DI83
GPA: 3.55
GMAT Focus 1: 695 Q87 V84 DI83
Posts: 484
Kudos: 491
Kudos
Add Kudos
Bookmarks
Bookmark this Post
­(A) Increased output: This suggests US manufacturers are prepared to meet a potential rise in US demand. It strengthens the argument.

(B) Efficiency not improving as fast: This doesn't directly affect US manufacturers' ability to maintain production if demand increases domestically. It's irrelevant.

(C) Competitive advantages in the US: This is a strong possibility. Just like Europe favors its manufacturers, a rise in US demand would benefit US companies. This strengthens the argument.

(D) European initiatives: What Europe does doesn't affect the potential for increased US demand to benefit US manufacturers. It's irrelevant.

(E) Limited US market: This suggests there's room for growth in US production, but it doesn't explain why US manufacturers would maintain production levels. It's a weak explanation.­
User avatar
Ro_007
Joined: 28 Jan 2024
Last visit: 16 Dec 2025
Posts: 34
Own Kudos:
Given Kudos: 3
Posts: 34
Kudos: 18
Kudos
Add Kudos
Bookmarks
Bookmark this Post
sayantanc2k
maitysourav
why option E is not correct.

The correct option should explain why United States manufacturers will probably maintain significant production levels. The reason for maintaining production levels cannot be that the current market for solar-power generators in the United States is very limited. Hence option E is wrong.
Why cant it be the reason when the question states that demand will increase with the funding? Stating the current mkt is limited and demand will increase with funding explains "maintaining" significant production levels better than having comptt advantage ?

Am I going out of bounds of the argument ? is it far fetched ?
 1   2   
Moderators:
Math Expert
109963 posts
Founder
43171 posts