CR- mechanicorp : General GMAT Questions and Strategies
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# CR- mechanicorp

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VP
Joined: 17 Jun 2008
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03 Sep 2008, 20:28
Mechanicorp’s newest product costs so little to make that it appears doubtful the company will be able to sell it without increasing the markup the company usually allows for profit: potential clients would simply not believe that something so inexpensive would really work. Yet Mechanicorp’s reputation is built on fair prices incorporating only modest profit margins.
The statements above, if true, most strongly support which of the following?
(A) Mechanicorp will encounter difficulties in trying to set a price for its newest product that will promote sales without threatening to compromise the company’s reputation.
(B) Mechanicorp achieves large annual profits, despite small profits per unit sold, by means of a high volume of sales.
(C) Mechanicorp made a significant computational error in calculating the production costs for its newest product.
(D) Mechanicorp’s newest product is intended to perform tasks that can be performed by other devices costing less to manufacture.
(E) Mechanicorp’s production processes are designed with the same ingenuity as are the products that the company makes

Need explanations !!!
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Its Now Or Never

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04 Sep 2008, 15:58
I'm pretty sure its A. All the other options are inferences nos sustained with the premises provided.
VP
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04 Sep 2008, 18:37
asdert wrote:
I'm pretty sure its A. All the other options are inferences nos sustained with the premises provided.

Can u explain y D is wrong???
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Its Now Or Never

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04 Sep 2008, 19:44
I think you are inferring to much.

Nowhere in the premises is menioned anything about how the product compares to that of the competition, thus, it wouldn't be likely to be the correct answer.

Same thing happens with the other choices.

Hope this helps!
VP
Joined: 17 Jun 2008
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05 Sep 2008, 18:11
asdert wrote:
I think you are inferring to much.

Nowhere in the premises is menioned anything about how the product compares to that of the competition, thus, it wouldn't be likely to be the correct answer.

Same thing happens with the other choices.

Hope this helps!

kindly tell me how do u differentiate between inference and direct answer!!! i often face difficulty in identifying inferences,RC and in CRs.
Here also i just messed up got confused between options !!

how do we differentiate between SUPPORT and INFERENCE questions and options ? How to eliminate i mean ?

OA is A .
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25 Sep 2008, 08:29
spriya wrote:
asdert wrote:
I think you are inferring to much.

Nowhere in the premises is menioned anything about how the product compares to that of the competition, thus, it wouldn't be likely to be the correct answer.

Same thing happens with the other choices.

Hope this helps!

kindly tell me how do u differentiate between inference and direct answer!!! i often face difficulty in identifying inferences,RC and in CRs.
Here also i just messed up got confused between options !!

how do we differentiate between SUPPORT and INFERENCE questions and options ? How to eliminate i mean ?

OA is A .

An inference in everyday life means something that implies something is true, but for Gmat purposes an inference means something that must be true from the passage or paragraph you just read.
An inference for example is.
All goats produce milk
The farm has goats, cows and chickens.
An inference for example would be that the farm produces milk, because the farm has goats and we are already told by the first premise that all goats produce milk.
Am not exactly sure what you are reffering to as a direct answer, but if am correct, then a direct answer, would come with a question like. Do goats produce milk, the direct answer here will be yes, you dont have to infer or try to put things together, the answer is right there in the passage. This helps a lot for RC questions.
To eliminate, just think support questions, if that answer was not there, and i was reading the passage to you, you may have some doubts about what i was saying, but the right answer would help eliminate that doubt in support questions.
I already explained inference above, hope this helps.
Re: CR- mechanicorp   [#permalink] 25 Sep 2008, 08:29
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# CR- mechanicorp

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