Alternative Plants

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Utility Corp, a company with a specific level of cash in its budget, has been clearing uninhabited land near a national park for the construction of a coal plant. This practice continues even though greater annual profits can be made from a nuclear plant, which will not damage the nearby park, than from a coal plant, which will injure the habitat.

Which of the following, if true, most helps to explain why Utility Corp has been pursuing the less profitable of the two economic activities mentioned above?

Review: Alternative Plants


Explanation

Reading the question: we can start yet again with the question stem. We might be motivated to do so by the fact that the question stem can be seen at a glance to have some substantial language in it (it's not just asking for a flaw, as in Drivers Over 30). The stem gives us a specific task: explain why Utility Corp would pursue a less profitable option. A correct answer to this question will clarify the situation without contradicting any of the facts we have so far. For example, maybe the Corp is motivated by something other than greater profits. With that as our filter, a prediction along the lines of "some other motivation," we can turn to the answer choices.

Applying the filter: The answer choices don't match our particular prediction. In fact, the only answer choice that seems relevant to the situation is (E); it's the only one comparing the two options. But choice (E) might, at first, seem to contradict the data--aren't profits from nuclear were greater? Reviewing the question, we see the company has a specific level of cash in its budget, we are told. And there's a high up-front cost to building a nuclear plant, according to (E). So a nuclear plant might be bad for the company's current cash situation, even if it's more profitable in the long run. Choice (E) is a good explanation. Meanwhile, (A) and (D) are focused on the park, which isn't really relevant to the coal vs. nuclear decision. Choice (C) mentions a random detail about coal that hasn't been connected to the coal vs. nuclear question.

Note: in the language of the Critical Reasoning Strategy at the beginning of this book, we started off with a filter than was a "prediction" and we ended up using a filter that was less specific, one of "basic relevance." It's typical, if our prediction doesn't turn out as planned, to slip back to a less specific filter of the answer choices. And the various filters can be quite similar, so you don't need to worry too much about which type you are using or whether you switch--at this point, the important thing is to practice having a filter of some sort before you turn to the answer choices.

The correct answer is (E).


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