aidyn wrote:
dipeshsalvi wrote:
Which of the following most logically completes the argument?
United States manufacturers 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.
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 ?
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:
Quote:
(C) just as European manufacturers enjoy certain competitive advantages in Europe, so do United States manufacturers in the United States
(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:
Quote:
(A) some United States manufacturers have been substantially increasing their output over 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.
Awesome explanation! Now everything makes sense. Thanks, GMATNinja!