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The question here asks us to explain why the threshold of economic viability has not decreased from $35, despite technological improvements in solar power equipment. The key to this question is to realize what the definition of economic viability is, as defined by the GMAT writers of this question. This specific definition can be found in the parenthesis in the question, the part where it says "(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)" This is where the "threshold of economic viability" is defined. Reading this carefully, you will realize that the "price of oil" is a threshold that will not change unless the ratio of efficiencies of oil power equipment vs. solar power equipment increases or decreases. This is the ONLY thing that will change the threshold. |
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