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A product that represents a clear technological advance over

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VP
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A product that represents a clear technological advance over [#permalink] New post 28 Jan 2005, 05:53
00:00
A
B
C
D
E

Difficulty:

  5% (low)

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0% (00:00) correct 0% (00:00) wrong based on 0 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 mew 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.

PLEASE reason it, thanks
[Reveal] Spoiler: OA

Last edited by Zarrolou on 07 Aug 2013, 05:47, edited 1 time in total.
Added OA.
Director
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 [#permalink] New post 28 Jan 2005, 06:55
(C).

I am kinda still trying to brush up on my boldface strategies. Let's see how this goes
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 [#permalink] New post 28 Jan 2005, 09:42
I would go with ‘B’

Conclusion1: A product that represents a clear technological advance can command a high price.
Premise1 for Conclusion1: technological advances tend to be quickly surpassed
Premise2 for Conclusion1: companies want to make large profits while they still can
Premise3 for Conclusion1: many companies charge the greatest price the market will bear

Conclusion2: The strategy to maximize overall profit from a new product is to charge less than the greatest possible price
Premise1 for Conclusion2: large profits on the mew product will give competitors a strong incentive to quickly match the mew product’s capabilities.


‘A’ & ‘C’ – relates to assumptions so both can be eliminated.
‘D’ – The first bold face does not talk about endorsing the arguments strategy - The argument finally endorses to charge less than the greatest possible price – so ‘D’ can be eliminated.
‘E’ – The second bold face does not appeal to the strategy mentioned in the first part of the argument, so this can be eliminated.
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 [#permalink] New post 28 Jan 2005, 13:06
(D) for me.

The second BOLD statement is supporting/explaining the first BOLD statement .This is achieved in D & E but E goes beyond the scope and hence we are left with D.
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 [#permalink] New post 28 Jan 2005, 15:10
(B)
The explantion for the action:
Because the advantage would be passed soon, we raise price a lot.
The consideration that casts doubt:
If we raise price a lot, the advantage would be passed even quicker.
VP
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 [#permalink] New post 29 Jan 2005, 07:22
good explanation, rthothad and HongHu

OA is B
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 [#permalink] New post 23 Jul 2005, 10:10
can somebody explain why D is not correct?
S
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Regards, S

  [#permalink] 23 Jul 2005, 10:10
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