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Products with innovative and appealing designs relative to [#permalink] New post 01 Aug 2012, 23:17
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Question Stats:

26% (02:24) correct 73% (01:15) wrong based on 46 sessions
Products with innovative and appealing designs relative to competing products often command substantially higher prices in the marketplace.BECAUSE DESIGN INNOVATIONS ARE QUICKLY COPIED BY OTHER MANUFACTURERS, many consumer technology companies charge as much as possible for their new designs to extract as much value as possible from them.But large profits generated by innovative designs give stronger incentives to copy the designs. Therefore, THE BEST STRATEGY TO MAXIMIZE OVERALL PROFIT FROM AN INNOVATIVE NEW DESIGN IS TO CHARGE LESS THAN THE GREATEST POSSIBLE PRICE.


Consider the sentences in uppercase to be the boldfaced parts.

Q: In the argument above , the 2 portions in boldface (uppercase) play which of the following roles ?
(A) The First is an assumption that supports a described course of action; The second provides a consideration to support a preferred course of action.
(B) The first is a consideration that helps explain the appeal of a certain strategy;the second presents an alternative strategy endorsed by the argument.
(C) The first is a phenomenon that justifies a specific strategy ; the second is that strategy.
(D) The first is a consideration that demonstrates why a particular approach is flawed; the second describes a way to amend that approach.
(E) The first is a factor used to rationalize a particular strategy; The second is a factor against that strategy.
[Reveal] Spoiler: OA

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Re: Products with Innovative and appealing design [#permalink] New post 02 Aug 2012, 02:22
imhimanshu wrote:
Products with innovative and appealing designs relative to competing products often command substantially higher prices in the marketplace.BECAUSE DESIGN INNOVATIONS ARE QUICKLY COPIED BY OTHER MANUFACTURERS, many consumer technology companies charge as much as possible for their new designs to extract as much value as possible from them.But large profits generated by innovative designs give stronger incentives to copy the designs. Therefore, THE BEST STRATEGY TO MAXIMIZE OVERALL PROFIT FROM AN INNOVATIVE NEW DESIGN IS TO CHARGE LESS THAN THE GREATEST POSSIBLE PRICE.


Consider the sentences in uppercase to be the boldfaced parts.

Q: In the argument above , the 2 portions in boldface (uppercase) play which of the following roles ?
(A) The First is an assumption that supports a described course of action; The second provides a consideration to support a preferred course of action.
(B) The first is a consideration that helps explain the appeal of a certain strategy;the second presents an alternative strategy endorsed by the argument.
(C) The first is a phenomenon that justifies a specific strategy ; the second is that strategy.
(D) The first is a consideration that demonstrates why a particular approach is flawed; the second describes a way to amend that approach.
(E) The first is a factor used to rationalize a particular strategy; The second is a factor against that strategy.


Responding to a pm:

There are two strategies discussed here:
1. charge as much as possible for their new designs
2. CHARGE LESS THAN THE GREATEST POSSIBLE PRICE.

The argument endorses the second strategy.

The first statement in bold "BECAUSE DESIGN INNOVATIONS ARE QUICKLY COPIED BY OTHER MANUFACTURERS" explains the reason for the appeal of the first strategy.
The second statement in bold is the second strategy, the strategy endorsed by the argument.

Answer is option (B) (not (C)).
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Re: Products with Innovative and appealing design [#permalink] New post 10 Aug 2012, 08:37
Can you please confirm himanshu that the OA is B or C . .I am nobody to challenge the accuracy of Karishma and infact i also marked B for this , but after looking at answer i was able to justify C . as the first bolded phrase does justify the strategy in second bold face and for B

The first is a consideration that helps explain the appeal of a certain strategy >> to extract as much profit as possible yes it refers to this strategy but the wording of answer choice does create confusion. .
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Re: Products with Innovative and appealing design [#permalink] New post 10 Aug 2012, 22:28
@ PUNEETSCHDV

The OA is C. However, I would recommend you not to study this problem, rather solve OG Boldface questions. The structure of this CR is very much similar to one of the OG question. I don't have OG with myself right now, otherwise would have posted the problem number.

Thanks
H

PUNEETSCHDV wrote:
Can you please confirm Himanshu that the OA is B or C . .I am nobody to challenge the accuracy of Karishma and infact i also marked B for this , but after looking at answer i was able to justify C . as the first bolded phrase does justify the strategy in second bold face and for B

The first is a consideration that helps explain the appeal of a certain strategy >> to extract as much profit as possible yes it refers to this strategy but the wording of answer choice does create confusion. .

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Re: Products with Innovative and appealing design [#permalink] New post 10 Aug 2012, 23:00
PUNEETSCHDV wrote:
Can you please confirm himanshu that the OA is B or C . .I am nobody to challenge the accuracy of Karishma and infact i also marked B for this , but after looking at answer i was able to justify C . as the first bolded phrase does justify the strategy in second bold face and for B

The first is a consideration that helps explain the appeal of a certain strategy >> to extract as much profit as possible yes it refers to this strategy but the wording of answer choice does create confusion. .


Again, C is incorrect. Don't take my word for it. Think on your own.

C says:
The first is a phenomenon that justifies a specific strategy - this is fine. It justifies "charge as much as possible for their new designs"
the second is that strategy. - this is incorrect. The second is not the strategy that the first part justifies. The second is the strategy "CHARGE LESS THAN THE GREATEST POSSIBLE PRICE."

B says:
The first is a consideration that helps explain the appeal of a certain strategy; - this is fine. It explains the appeal of "charge as much as possible for their new designs"
the second presents an alternative strategy endorsed by the argument. - this is fine. It presents "CHARGE LESS THAN THE GREATEST POSSIBLE PRICE", the strategy endorsed by the argument.
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Re: Products with Innovative and appealing design [#permalink] New post 11 Aug 2012, 00:40
I go with B. the first portion supports first strategy (higher pricing) and the second portion is an alternate strategy (lower pricing).
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Re: Products with Innovative and appealing design [#permalink] New post 11 Aug 2012, 05:09
i just wanted to confirm that does first bold face justifies the second strategy or not ?? to me it seems it does. .do not charge the greatest possible to discourage the copiers . ..

BECAUSE DESIGN INNOVATIONS ARE QUICKLY COPIED BY OTHER MANUFACTURERS. . . therefore THE BEST STRATEGY TO MAXIMIZE OVERALL PROFIT FROM AN INNOVATIVE NEW DESIGN IS TO CHARGE LESS THAN THE GREATEST POSSIBLE PRICE.

is it fine to read the two bold face parts in relative to the whole stimulus and also to read them relative to each other before moving to answers or should we read them relative to stimulus only and not relative to each other as this might distract us , as i do find logic in C for this one ??
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Re: Products with Innovative and appealing design [#permalink] New post 11 Aug 2012, 19:21
PUNEETSCHDV wrote:
i just wanted to confirm that does first bold face justifies the second strategy or not ?? to me it seems it does. .do not charge the greatest possible to discourage the copiers . ..

BECAUSE DESIGN INNOVATIONS ARE QUICKLY COPIED BY OTHER MANUFACTURERS. . . therefore THE BEST STRATEGY TO MAXIMIZE OVERALL PROFIT FROM AN INNOVATIVE NEW DESIGN IS TO CHARGE LESS THAN THE GREATEST POSSIBLE PRICE.

is it fine to read the two bold face parts in relative to the whole stimulus and also to read them relative to each other before moving to answers or should we read them relative to stimulus only and not relative to each other as this might distract us , as i do find logic in C for this one ??


The argument gives the first bold statement to support strategy 1 (charge greatest). Another line in the argument "But large profits generated by innovative designs give stronger incentives to copy the designs." supports strategy 2 (charge less).

You do not read the boldface sentences relative to each other. You read them only relative to the entire argument. Look at the question asked: "In the argument above, the 2 portions in boldface (uppercase) play which of the following roles ?"

What role do the boldface portions play in the ARGUMENT?
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Re: Products with Innovative and appealing design [#permalink] New post 12 Aug 2012, 00:07
Try doing Verbal Review question 74. The structure of above posted question is similar to that of V.R question.

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Re: Products with Innovative and appealing design   [#permalink] 12 Aug 2012, 00:07
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