Critical Reasoning

Innovations in production technology and decreases in the cost of equipment have made recycling paper into new paper products much more cost-efficient over the last twenty years. Despite these advances, though, the "point of price viability" (the price that new paper made from trees must reach to make recycled paper comparable in price) is unchanged at $2.12 per ream of paper.

Which of the following, if true, most explains why the increased cost-efficiency of recycled paper has not lowered the point of price viability?

a. The cost of unprocessed trees to make new paper has fallen dramatically.

b. The decreases in the cost of recycling equipment have occurred despite increases in the cost of raw materials required to manufacture such equipment.

c. Innovations in production technology have made it much more cost-efficient to produce new paper from trees.

d. Most paper is made from the scraps and sawdust left after processing new trees for lumber, rather than directly from the trees themselves.

e. When the price of planting new saplings to replace cut trees becomes more expensive, forests reserves not previously worth cutting become cost-effective to cut.

OA C but what's wrong with A

What is meant by "comparable in price" ? does it mean that the new efficiency should make prices of paper coming from trees similar to the price of paper recycled products ? If so, what is the relationship ?

heshamelaziry wrote:What is meant by "comparable in price" ? does it mean that the new efficiency should make prices of paper coming from trees similar to the price of paper recycled products ? If so, what is the relationship ?

IMO the ratio of price of new paper vs that of recycles paper.

C: because

innovation + dec cost of equipment = cheaper to recycle paper

So if Innovation is true.. then it must also benefit other part of the paper industry.. that is : making new paper..

thus it is implied that innovation is responsible for making the cost of new paper cheaper...



a: is incorrect because.. unprocessed trees... the issue is with innovation + decrease incost.....unprocessed TREES is out of scope..