GMAT – Section 1: Test 1

Select yes if the Bay Line power plant would spend less money during the next decade purchasing carbon credits from other businesses rather than paying for the lowest cost retrofit based on the current production levels and regulations. Otherwise, select no.

Select yes if the Roland Mines power plant would spend less money during the next decade purchasing carbon credits from other businesses rather than paying for the lowest cost retrofit based on the current production levels and regulations. Otherwise, select no.

Select yes if the South Island power plant would spend less money during the next decade purchasing carbon credits from other businesses rather than paying for the lowest cost retrofit based on the current production levels and regulations. Otherwise, select no.

Answer questions 4–6 based on the following assumption.

Review Test

Answer questions 4–6 based on the following assumption.

Let M denote the price of the lowest cost retrofit and N denote the number of CO₂ tons by which the plant exceeds its allotted amount on a yearly basis. Select the expression that represents the least percent discount in the cost of the retrofit that would result in the plant choosing to install the retrofit.

Assume that the market price of a carbon credit suddenly drops to €3.50 per ton. Which of the following plants would be expected to change its decision, based on previous data, from installing the lowest cost retrofit to buying carbon credits instead?