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A product that represents a clear technological advance over

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A product that represents a clear technological advance over [#permalink]  20 Jul 2012, 02:50
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Question Stats:

33% (02:47) correct 67% (01:53) wrong based on 694 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 mew 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.

Can someone please explain the method used to eliminate the choices.
[Reveal] Spoiler: OA

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Re: Another Variant to already existing question [#permalink]  20 Jul 2012, 04:38
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Expert's post
thebigr002 wrote:
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 mew 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.

Can someone please explain the method used to eliminate the choices.

I think it's a messed up question. None of the options work well.

The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.
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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 6062 Location: Pune, India Followers: 1605 Kudos [?]: 8971 [2] , given: 195 Re: Another Variant to already existing question [#permalink] 13 Aug 2013, 20:07 2 This post received KUDOS Expert's post pavan2185 wrote: I was stumped looking at all the choices. Mostly, to me ,half parts of them are correct and other half parts are wrong. Given that this is an official question, can we apprehend the occurance such questions in the real GMAT. A rare question of OG/Prep may not be perfect but it is very unlikely that you will come across an ambiguous question in the actual test. Each and every question goes through multiple analysis and loads of testing before it is made live. That much thought is probably not given to every question they include in the OG/Prep. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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Re: A product that represents a clear technological advance over [#permalink]  07 Jun 2015, 00:37
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Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
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Re: Another Variant to already existing question [#permalink]  20 Jul 2012, 05:17
VeritasPrepKarishma wrote:
thebigr002 wrote:
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 mew 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.

Can someone please explain the method used to eliminate the choices.

I think it's a messed up question. None of the options work well.

The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.
_________________

Live Life the Way YOU Love It !!

GmatPrep1 [10/09/2012] : 650 (Q42;V38) - need to make lesser silly mistakes.
MGMAT 1 [11/09/2012] : 640 (Q44;V34) - need to improve quant pacing and overcome verbal fatigue.

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Re: Another Variant to already existing question [#permalink]  21 Jul 2012, 12:23
thebigr002 wrote:
VeritasPrepKarishma wrote:
thebigr002 wrote:
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 mew 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.

Can someone please explain the method used to eliminate the choices.

I think it's a messed up question. None of the options work well.

The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.

I agree with VeritasPrepKarishma; this is a messed up question.

Yes the ultimate strategy is to charge less than the maximum price, but B discusses the strategy of charging maximum.
Thus, the second part of Choice B is incorrect. It is not a consideration raised to call into... wisdom.. it is the strategy itself.
So if it stated "The first is a consideration raised to explain the appeal of a certain strategy; the second is that strategy" then it would be correct.
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Re: Another Variant to already existing question [#permalink]  23 Jul 2012, 08:54
Expert's post
thebigr002 wrote:
The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.[/quote]

It is. Read the highlighted portion again. 'Charge LESS than greatest possible price' is the strategy endorsed by the argument.
But another strategy is discussed before the one endorsed by the argument. This other strategy is to charge the maximum possible. The first boldface statement is raised to explain the appeal of this other strategy. The second boldface is actually this other strategy.
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Re: Another Variant to already existing question [#permalink]  16 Jul 2013, 18:03
VeritasPrepKarishma wrote:
thebigr002 wrote:
The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.

It is. Read the highlighted portion again. 'Charge LESS than greatest possible price' is the strategy endorsed by the argument.
But another strategy is discussed before the one endorsed by the argument. This other strategy is to charge the maximum possible. The first boldface statement is raised to explain the appeal of this other strategy. The second boldface is actually this other strategy.[/quote]
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Re: A product that represents a clear technological advance over [#permalink]  03 Aug 2013, 05:38
It should be like first is a strategy that is in support of the conclusion; Second represent the strategy that the argument opposes.
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Re: Another Variant to already existing question [#permalink]  13 Aug 2013, 12:15
VeritasPrepKarishma wrote:
thebigr002 wrote:
The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.

It is. Read the highlighted portion again. 'Charge LESS than greatest possible price' is the strategy endorsed by the argument.
But another strategy is discussed before the one endorsed by the argument. This other strategy is to charge the maximum possible. The first boldface statement is raised to explain the appeal of this other strategy. The second boldface is actually this other strategy.[/quote]

I was stumped looking at all the choices. Mostly, to me ,half parts of them are correct and other half parts are wrong. Given that this is an official question, can we apprehend the occurance such questions in the real GMAT.
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Re: A product that represents a clear technological advance over [#permalink]  18 Sep 2013, 09:38
I believe the second boldface portion should be " But large profits on the new product will give competitors a strong incentive to quickly match the mew product’s capabilities, " not the original one. It makes sense that this sentence is a consideration raised to call into question the wisdom of adopting that strategy.
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Re: A product that represents a clear technological advance over [#permalink]  11 Oct 2013, 05:13
[color=#0000ff] The second half of choice B is wrong. The main questionable part is "call into question"

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.
[/color]
Re: A product that represents a clear technological advance over   [#permalink] 11 Oct 2013, 05:13
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