Stuart please help!!

Nidhs · Posted: Thu Jan 31, 2008 11:26 pm Post subject: Stuart please help!!

Technological improvements and reduced equipment costs have made converting solar energy directly into
electricity far more cost-efficient in the last decade. However, the threshold of economic viability for solar power
(that is, the price per barrel to which oil would have to rise in order for new solar power plants to be more
economical than new oil-fired power plants) is unchanged at thirty-five dollars.
Which of the following, if true, does most to help explain why the increased cost-efficiency of solar power has
not decreased its threshold of economic viability?
(A) The cost of oil has fallen dramatically.
(B) The reduction in the cost of solar-power equipment has occurred despite increased raw material costs
for that equipment.
(C) Technological changes have increased the efficiency of oil-fired power plants.
(D) Most electricity is generated by coal-fired or nuclear, rather than oil-fired, power plants.
(E) When the price of oil increases, reserves of oil not previously worth exploiting become economically
viable.

From what i understand economic viability in this case means monetery advantage of solar power plant over that of oil-fired plants has been constant in spite of the fact that technology has made it cheoper to convert solar energy to electricity. I don't understand what the following sentence means
(that is, the price per barrel to which oil would have to rise in order for new solar power plants to be more
economical than new oil-fired power plants)
Could you please expain to me Embarassed

Stuart Kovinsky · Posted: Fri Feb 01, 2008 12:43 am Post subject:

nirupshetty · Posted: Mon Feb 25, 2008 10:58 am Post subject:

Why not 'A'? Cost of Oil is also a big factor for determining economic viability.

torontogmat.com · Posted: Thu Feb 28, 2008 1:11 pm Post subject:

The question asks

Which of the following, if true, does most to help explain why the increased cost-efficiency of solar power has not decreased its *threshold* of economic viability?

Choice A would be relevant if we had been asked to explain why solar power has not become economically viable. Instead, we were asked about the *level* (of the price of oil) at which solar power would become viable, and why it hasn't changed.