Although utilities pay less for low-quality coal per ton delivered than for high-quality coal, more low-quality coal must be burned to generate the same amount of electricity. Therefore, the proper basis for a cost comparison at any given time is the relative cost, at that time, of purchasing the amount of coal a utility needs to buy in order to generate a given amount of electricity.Which of the following, if true, casts the most serious doubt on the accuracy of the conclusion above?A. Per ton of coal burned, low-quality coal generates more ash than does high-quality coal, and the disposal of ash is becoming more expensive.This choice is interesting.
The conclusion is basically that the proper basis for a cost comparison is the relative cost of the amount of coal needed for generating a given amount of electricity.
However, if this choice is true, then ash disposal costs could be an overriding consideration because theymight matter more than the cost of the coal itself.
Keep.
B. Many large industrial centers are located closer to geological deposits of high-quality coal than they are to geological deposits of low-quality coal.The evidence is about cost "per ton delivered."
So, delivery costs have already been taken into account.
Thus, this choice makes no difference.
Eliminate.
C. Known reserves of low-quality coal are many times larger than known reserves of high-quality coal.This may be why low quality coal is less expensive.
At the same time an explanation for the pricing difference doesn't factor into buying decisions.
Eliminate.
D. The price per ton of high-quality coal has been rising faster than the price per ton for low-quality coal, and this trend will continue.
This doesn't change how buying decisions should be made, which is what the conclusion is about.
After all, the conclusion is not that utilities should by high-quality coal.
Eliminate.
E. Coal-fired power plants that burn low-quality coal efficiently also burn high-quality coal efficiently.This choice makes no difference.
After all, if utilities compare relative costs, they are taking efficiency into account.
Eliminate.
Correct answer: A