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.

Yup B.

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:)

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
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Is this okay?

Should be B

B

B as its what is given in bold text

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.

The answer should be B.

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 !
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"Nowadays, people know the price of everything, and the value of nothing." Oscar Wilde