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V07-11

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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
[Reveal] Spoiler: OA

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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
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Re: V07-11 [#permalink]

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New post 23 Sep 2015, 11:49
Bunuel wrote:
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?

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Re: V07-11 [#permalink]

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AndriyBondarenko wrote:
Bunuel wrote:
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.
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Re: V07-11 [#permalink]

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New post 13 Dec 2016, 04:48
why option E is not correct.

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Re: V07-11 [#permalink]

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maitysourav wrote:
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.

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Re: V07-11 [#permalink]

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New post 27 Feb 2017, 02:57
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!

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Re: V07-11 [#permalink]

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New post 04 Mar 2017, 04:45
Atbr1602 wrote:
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.

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New post 14 Jul 2017, 04:12
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate.

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Re: V07-11 [#permalink]

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New post 02 Aug 2017, 05:50
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.
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Re: V07-11 [#permalink]

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New post 12 Oct 2017, 02:58
umg wrote:
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).

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Re: V07-11   [#permalink] 12 Oct 2017, 02:58
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