Find all School-related info fast with the new School-Specific MBA Forum

It is currently 24 Apr 2014, 18:50

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A product that represents a clear technological advance over

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
Status: Appearing for GMAT
Joined: 23 May 2011
Posts: 134
Location: United States (NJ)
Concentration: Finance, General Management
GPA: 3.5
WE: Information Technology (Computer Software)
Followers: 1

Kudos [?]: 47 [0], given: 34

GMAT Tests User
A product that represents a clear technological advance over [#permalink] New post 01 Aug 2011, 13:36
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

55% (02:44) correct 44% (01:43) wrong based on 72 sessions
A product that represents a clear technological advance over competing products can generally command a high price. Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the greatest price the market will bear when they have such a product. But large profits on the new product will give competitors a strong incentive to quickly match the new product’s capabilities. Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.

In the argument above, the two portions in boldface play which of the following roles?

A. The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.
B. The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.
C. The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.
D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.
E. The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.

[Reveal] Spoiler:
B

Please also explain difference between assumption and consideration.
[Reveal] Spoiler: OA

_________________

"Giving kudos" is a decent way to say "Thanks" and motivate contributors. Please use them, it won't cost you anything.
Thanks Rphardu

1 KUDOS received
Intern
Intern
Joined: 15 Jul 2011
Posts: 2
Followers: 0

Kudos [?]: 1 [1] , given: 0

Re: Bold Face CR [#permalink] New post 01 Aug 2011, 15:50
1
This post received
KUDOS
Although I find this a ridiculously unreal question, I will go with B:

But large profits on the new product will give competitors a strong incentive to quickly match the new product’s capabilities.

Basically this part is trying to explain why the strategy described above is not well-reasoned and sound. Although companies are trying to make large profits when they still can, eventually competitors match the product's capabilities and offer it for a lower price. So this statement casts a doubt on the strategy initially stated.

Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can

The author introduces the first bold statement as an appealing strategy for firms which he later tries to oppose with this additional statement.

The only answer that comes closest to that is B : First statement introduces an appealing strategy, which might ultimately prove to be wrong.

A,D,E can be eliminated because each one of them contradicts in some way or another the statements in the body of the question. IMO the trap answer is C - however, I associate "tend to be" with a consideration rather than assumption, and I also like "explain the appeal of a certain strategy" more than "justify a certain strategy" as here nothing is justified but simply taken into consideration.

This is a hard question. Hope this helps a little :)
Manager
Manager
Status: Appearing for GMAT
Joined: 23 May 2011
Posts: 134
Location: United States (NJ)
Concentration: Finance, General Management
GPA: 3.5
WE: Information Technology (Computer Software)
Followers: 1

Kudos [?]: 47 [0], given: 34

GMAT Tests User
Re: Bold Face CR [#permalink] New post 01 Aug 2011, 16:59
rossiankov wrote:
Although I find this a ridiculously unreal question, I will go with B:

But large profits on the new product will give competitors a strong incentive to quickly match the new product’s capabilities.

Basically this part is trying to explain why the strategy described above is not well-reasoned and sound. Although companies are trying to make large profits when they still can, eventually competitors match the product's capabilities and offer it for a lower price. So this statement casts a doubt on the strategy initially stated.

Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can

The author introduces the first bold statement as an appealing strategy for firms which he later tries to oppose with this additional statement.

The only answer that comes closest to that is B : First statement introduces an appealing strategy, which might ultimately prove to be wrong.

A,D,E can be eliminated because each one of them contradicts in some way or another the statements in the body of the question. IMO the trap answer is C - however, I associate "tend to be" with a consideration rather than assumption, and I also like "explain the appeal of a certain strategy" more than "justify a certain strategy" as here nothing is justified but simply taken into consideration.

This is a hard question. Hope this helps a little :)


Thanks for your try and approach. Question is from GMATPREP so not unrealistic, it is definiatly hard.
_________________

"Giving kudos" is a decent way to say "Thanks" and motivate contributors. Please use them, it won't cost you anything.
Thanks Rphardu

Senior Manager
Senior Manager
Joined: 24 Mar 2011
Posts: 469
Location: Texas
Followers: 4

Kudos [?]: 47 [0], given: 20

Re: Bold Face CR [#permalink] New post 01 Aug 2011, 22:14
i see that same problem is posted on gmatclub

prep-bf-65020.html

options are different. B in the above link shows a different view compared with the B in rphardu's post..
Manager
Manager
Joined: 01 Dec 2008
Posts: 64
Followers: 0

Kudos [?]: 2 [0], given: 2

Re: Bold Face CR [#permalink] New post 01 Aug 2011, 22:29
B reflects the role of the statements in the argument
Manager
Manager
Joined: 28 May 2011
Posts: 197
Location: United States
Concentration: General Management, International Business
GMAT 1: 720 Q49 V38
GPA: 3.6
WE: Project Management (Computer Software)
Followers: 2

Kudos [?]: 36 [0], given: 7

GMAT Tests User
Re: Bold Face CR [#permalink] New post 15 Aug 2011, 07:24
First, I would try to eliminate any choice if I can. Here, I am very sure that, first statment is not an assumption, so eliminate A and C

Second, Try to get the tone of the first statement. Here I see, first statement is trying to have some positive effect on the argument, so I would eliminate any option which is attributing negative tone to First Statement. So eliminate E

So, we are remaining with B and D.

Now, I would take Second statement as well into consideration and compare its tone with first statement's tone. Here, I find impacts of both of these on the conclusion (the strategy). So I can eliminate D as well because it says both of these statements are going in the same direction (support).

So I remain with B, which is also the right answer
_________________

-------------------------------------------------------------------------------------------------------------------------------
http://gmatclub.com/forum/a-guide-to-the-official-guide-13-for-gmat-review-134210.html
-------------------------------------------------------------------------------------------------------------------------------

Manager
Manager
Joined: 09 Jun 2011
Posts: 92
Followers: 0

Kudos [?]: 0 [0], given: 0

Re: Bold Face CR [#permalink] New post 13 Sep 2011, 09:22
B...
Manager
Manager
Status: Prepping for the last time....
Joined: 28 May 2010
Posts: 201
Location: Australia
Concentration: Technology, Strategy
GMAT 1: 630 Q47 V29
GPA: 3.2
Followers: 0

Kudos [?]: 11 [0], given: 21

GMAT Tests User
Re: Bold Face CR [#permalink] New post 14 Sep 2011, 03:58
C is wrong as it mentions that second bold phrase is a consideration doubting the first bold phrase. However, the second bold phrase only talks about the previous sentence (about profit making). There is no doubt cast on the first bold phrase in the whole argument.

B is best option since the second phrase talks about a way in which competitors can cash in in terms of price and quickly reaching similar product qualities. (calls into question the strategy adopted by the companies that charge high prices)
_________________

Two great challenges: 1. Guts to Fail and 2. Fear to Succeed

Re: Bold Face CR   [#permalink] 14 Sep 2011, 03:58
    Similar topics Author Replies Last post
Similar
Topics:
New posts A product that represents a clear technological advance over chunjuwu 6 28 Jan 2005, 05:53
New posts A product that represents a clear technological advance over KC 7 01 Nov 2006, 08:20
New posts A product that represents a clear technological advance over girikorat 6 06 Nov 2006, 10:15
Popular new posts 2 A product that represents a clear technological advance over nik1608nik 16 10 Jul 2009, 07:48
New posts A product that represents a clear technological advance over karanrajmishra 1 08 Sep 2010, 14:35
Display posts from previous: Sort by

A product that represents a clear technological advance over

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.