ParadoxDiff: Medium

Logic Breakdown

Passage Summary: Cold fusion would provide incredibly cheap energy compared to current fuels, but if we replaced all our current power plants with cold fusion ones, people would only see a small discount on their electric bills.

Reasoning: Cold fusion fuel is significantly cheaper than coal or oil, yet switching to it would only reduce residential electric bills by about 25 percent.

Analysis: The paradox here lies in the disconnect between the massive savings on raw materials and the relatively minor savings for the end consumer. To resolve this, we need to identify why fuel costs represent only a fraction of a total electric bill. Look for an answer that points to other fixed costs, such as the construction of the plants, the maintenance of the power grid, or administrative overhead, which would remain high regardless of the fuel source.

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7.

Each of the following, if true, would help to resolve the apparent discrepancy between the predictions above EXCEPT:

Correct Answer
C
Whether most companies are willing to adopt cold fusion doesn’t explain why bills would only drop by about 25% given cheap fuel. It’s largely irrelevant to the cost composition of residential bills and thus fails to resolve the discrepancy.
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