MBAsa wrote:Hello Everyone
I am really having a tough time with this question. Maybe I am thinking too much.
My problem with "A" is that you have to assume that the price of uranium would increase (and increase to such an extent that it offsets the costs of seawater extraction). Is this a solid assumption? Is it not possible that the price would stay the same or even decrease? If that happens the costs of seawater extraction would still be greater that the market price. There wouldn't be a demand for uranium. It would be better if the stimulus mentions something about the demand, but it doesn't and I can't bring in external information into the stimulus.
This CR links the high cost of extracting uranium from seawater to the likelihood that sea uranium will become economically viable.
The assumption is that NOTHING OTHER THAN A REDUCTION IN COST could make sea uranium economically viable.
Answer choice
A, rephrased as a statement:
The uranium in deposits on land is rapidly being depleted.
If land uranium is no longer available, then anyone who needs uranium will be forced to purchase sea uranium, enabling sellers of sea uranium to raise prices and offset their costs.
The result:
Sea uranium will become economically viable, despite the high extraction cost.
The correct answer is
A.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at
[email protected].
Student Review #1
Student Review #2
Student Review #3