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In response to the increasing cost of producing energy throu

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In response to the increasing cost of producing energy throu [#permalink] New post 12 Jul 2018, 07:09
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In response to the increasing cost of producing energy through traditional means, such as combustion, many utility companies have begun investing in renewable energy sources, chiefly wind and solar power, hoping someday to rely on them completely and thus lower energy costs. The utility companies claim that although these sources require significant initial capital investment, they will provide stable energy supplies at low cost. As a result, these sources will be less risky for the utilities than nonrenewable sources, such as gas, oil, and coal, whose prices can fluctuate dramatically according to availability.

The claim of the utility companies presupposes which of the following?

(A) The public will embrace the development of wind and solar power.
(B) No new deposits of gas, oil, and coal will be discovered in the near future.
(C) Weather patterns are consistent and predictable.
(D) The necessary technology for conversion to wind and solar power is not more expensive than the technology needed to create energy through combustion.
(E) Obtaining energy from nonrenewable sources, such as gas, oil, and coal, cannot be made less risky.
[Reveal] Spoiler: OA

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Re: In response to the increasing cost of producing energy throu [#permalink] New post 04 Sep 2018, 05:20
To me the answer choice (C) looks to be completely out of scope. I chose answer choice (D).

Can you please explain the correct answer?
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Re: In response to the increasing cost of producing energy throu [#permalink] New post 04 Sep 2018, 08:12
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In response to the increasing cost of producing energy through traditional means, such as combustion, many utility companies have begun investing in renewable energy sources, chiefly wind and solar power, hoping someday to rely on them completely and thus lower energy costs. The utility companies claim that although these sources require significant initial capital investment, they will provide stable energy supplies at low cost. As a result, these sources will be less risky for the utilities than nonrenewable sources, such as gas, oil, and coal, whose prices can fluctuate dramatically according to availability.

Assumption is an unstated gap that links the argument to the conclusion. As you can see my portions highlighted in the passage

D is out of scope, The necessary technology for conversion ..........................

The argument care about that the renewable resources are stable in the sense they are constant to provide us with energy. Otherwise would be better the non-renewable resources because even though their price fluctuate enormously, their supply is secure and certain.

So, IF we can predict the wind or solar power and they pass a break even point over which is profitable to use them, then they will become a profitable source of energy.

Hope this helps.

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Re: In response to the increasing cost of producing energy throu [#permalink] New post 09 Oct 2018, 21:25
Hi Carcass,
What about answer B) No new deposits of gas, oil, and coal will be discovered in the near future. ?
My thought process goes with the last sentence, in terms of availability. If more gas, coal, and oil is found, wouldn't it be a more viable option since it would be cheaper (for a time at least)?

While I agree that C is the best answer, I was just curious on your thoughts on B's train of thought.
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Re: In response to the increasing cost of producing energy throu [#permalink] New post 10 Oct 2018, 03:57
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I do think you do have misinterpreted the context of availability.

The price will fluctuate according to the availability of classic energy resources: if they will be scarce AND the demand will be stable or even higher, then the price will increase in the future or vice-versa.

Demand and offer law.

B says that no NEW deposit will discover BUT this nothing is related to the renewable resources and our assumption that they must be predictable in their exploits.

Of course, even whether we do not find new oil deposit that not means for the next 200 years we will have petroleum for our industrial society and the economic progress as a whole.

Hope now is clear.

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Re: In response to the increasing cost of producing energy throu [#permalink] New post 10 Oct 2018, 16:17
PIneappleBoy2 wrote:
Hi Carcass,
What about answer B) No new deposits of gas, oil, and coal will be discovered in the near future. ?
My thought process goes with the last sentence, in terms of availability. If more gas, coal, and oil is found, wouldn't it be a more viable option since it would be cheaper (for a time at least)?

While I agree that C is the best answer, I was just curious on your thoughts on B's train of thought.


"The utility companies claim that although these sources require significant initial capital investment, they will provide stable energy supplies at low cost."

This is the claim. The question asks what assumptions must be made for them to beleive/make this claim. While the availability of gas is, in the greater context of "should we be trying to use alternative resources," important, the question isn't asking about that. It is ONLY asking about what must the companies assume in order for them to claim that it will provide stable energy supply at LOW COST. The key here, as to why your answer is wrong, is that the claim is AT LOW COST and not AT LOWER COST. Its a small difference, but a very important one. LOW COST is a self contained value while LOWER COST is the cost relative to the other options. In short, they must assume that the energy WILL be stable and that it WILL have a low cost. More gass/coal will not directly affect the cost of the resource, nor will it have any affect on how stable and sustainable it is, thus it is incorrect. Similarly, neither A D nor E directly affect the stability or cost of the alternative energy. C, on the other hand would. Stability of the resource requires knowing that the weather won't be stange and sporatic. Therefore, assuming that the weather is consistent and predicatable is an assumption of the claim that the new resource could be stable and cheap, due to it's relation to the claim of stability.
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Re: In response to the increasing cost of producing energy throu [#permalink] New post 12 Oct 2018, 02:07
without doubt C
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Re: In response to the increasing cost of producing energy throu [#permalink] New post 24 Oct 2018, 10:17
You said: Similarly, neither A D nor E directly affect the stability or cost of the alternative energy. C, on the other hand would.

I chose A, because you have to have people willing to subscribe to renewable resources as a power source. If the public does not embrace solar and wind energy, then it would in fact be a risky endeavor because it would not pay off and so companies would not be able to offer wind and solar power at low cost.

I feel that A is just as good an answer as C. Am I not seeing something that others are?
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Re: In response to the increasing cost of producing energy throu [#permalink] New post 31 Oct 2018, 17:54
Can anyone explain why no E
Re: In response to the increasing cost of producing energy throu   [#permalink] 31 Oct 2018, 17:54
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