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.
rashminet84
Re: CR :-A product that represents a clear [#permalink]
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. (it is actually based 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.
Economist
Re: CR :-A product that represents a clear [#permalink]
Lets take example of choice A. 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.
Take a look at the first part, see if the first boldfaced is really an assumption. Similarly check if the second part represents a course of action.
2-3 choices will go off. Then you need to check the semantics:)
mayankseth10 wrote:
I hate these. It's one of those question types where I get confused between all 5 options.
But yes, Rashmine's reasoning above is appealing....... I would go with B.
But can anyone explain a simple approach of dealing these type of CRs....... or a link where this has already been done would also suffice.
Economist
Re: CR :-A product that represents a clear [#permalink]
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. (it is actually based 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.
mayankseth10
Re: CR :-A product that represents a clear [#permalink]
Can someone please explain the difference between B and D? How do we differentiate?
the two portions are not in the same phase (note the usage of 'but' in the second boldface portion). B explains that they are out of phase, D says both are in sync
_________________ Is this okay?
sudeep
Re: CR :-A product that represents a clear [#permalink]
Posted: Sat Jul 18, 2009 10:11 am
Director
Joined: Fri Jun 05, 2009 Posts: 898 WE 1: 7years (Financial Services - Consultant, BA) Followers: 5
Re: A product that represents a clear technological advance over [#permalink]
Posted: Sun Feb 05, 2012 8:52 pm
Manager
Status: MBA Aspirant Joined: Sat Jun 12, 2010 Posts: 200 Location: India
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A lot of times for these questions you need to look at the POV or the argument of the paragraph. The argument and conclusion is it is not a good idea to charge the greatest possible price for new products. The first sentence tells us a reason WHY you SHOULD charge the greatest possible price. Therefore first sentence DOES NOT support the argument of charing Less than greatest possible price.
Using the same logic it is easy to see that B is the answer.
mourinhogmat1
Re: A product that represents a clear technological advance over [#permalink]
Narrowed it down to B and E. E mentions EXPLAINS which is not the case. The new point is a consideration which calls into question the rationale, therefore the answer is B.
omerrauf
Re: A product that represents a clear technological advance over [#permalink]
Posted: Thu Feb 09, 2012 9:01 am
Manager
Status: Employed Joined: Thu Nov 17, 2011 Posts: 104 Location: Pakistan
Concentration: International Business, Marketing GMAT 1: 720 Q49 V40
GPA: 3.2 WE: Business Development (Internet and New Media) Followers: 1
A. It is not an assumption, it is a fact. A out C. Again first boldface is not an assumption. C out D. The argument does not endorse the opinion, it is actually providing evidence against it. D out E. This is the other way around. The appeal is explained first. Other reasons as well but this should be enough to eliminate this option.
B. Yes the first boldface is a consideration that shows the reason for doing a certain activity. The second advises against it by providing evidence. B it is !
_________________ "Nowadays, people know the price of everything, and the value of nothing."Oscar Wilde