Critical Reasoning

Which of the following most logically completes the argument?
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 __________.

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

OA is [spoiler]C[/spoiler] but why [spoiler]E[/spoiler] is wrong.

If the current market is very limited, the demand will be more and hence the production level will remain significant.
Please give some insights where I am wrong.

It's C. E does not work as well, although I see your point. The passage says that Euro manufacturers are likely to capture the Euro market, so it logically follows that US manufacturers are likely to capture the US market.

This is assumption question.

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 __________.

A. some United States manufacturers have been substantially increasing their output over the last several years => out of scope. "output" is not anything in argument.
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 => natural. Not affect to US market and EU market.
C. just as European manufacturers enjoy certain competitive advantages in Europe, so do United States
manufacturers in the United States => we have to notify the market of US solar-generators before EU manufacturer emerge. "Most of US solar generators are export to EU", now "those were interested by US firms because of funded information from US government.
D. European governments are currently undertaking initiatives to stimulate the use of solar power within Europe => we are talking about US, not EU. We find the reason why US manufacturer of solar generators is successful
E. the current market for solar-power generators in the United States is very limited => This is the fact was inferred from the argument (Most of US generators are exported) . So, wrong.

If the current market is very limited, the demand will be more and hence the production level will remain significant. => current limited market means that the demand is now low. We need some factor that encourage this market. Your reasoning based on no factor.

Why isnt B relevant? If efficiency increases, it will hamper the demand for generator even if the demand for solar power increases

Nina1987 wrote:Why isnt B relevant? If efficiency increases, it will hamper the demand for generator even if the demand for solar power increases

B effectively refutes the argument. The question is looking for a statement that supports the assumption that the production levels of the US manufacturers will remain stable if the demand for the product increases in the US.

If the demand for the product is hampered, as you point out, that would lead to a decrease in the required supply and reduction in production of the product.

Hope that makes sense.

Sorry I think you didnt get my question. B actually says the efficiency is not increasing. I used negation to show why B is relevant