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# Products with innovative and appealing designs relative to

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Senior Manager
Joined: 07 Sep 2010
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Products with innovative and appealing designs relative to [#permalink]

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01 Aug 2012, 23:17
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Difficulty:

65% (hard)

Question Stats:

55% (02:38) correct 45% (01:33) wrong based on 635 sessions

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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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Last edited by WaterFlowsUp on 11 Oct 2013, 20:56, edited 1 time in total.
modified OA.
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Re: Products with Innovative and appealing design [#permalink]

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02 Aug 2012, 02:22
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Expert's post
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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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Manager Joined: 31 Aug 2011 Posts: 217 Followers: 6 Kudos [?]: 182 [0], given: 54 Re: Products with Innovative and appealing design [#permalink] ### Show Tags 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. . _________________ If you found my contribution helpful, please click the +1 Kudos button on the left, I kinda need some =) Senior Manager Joined: 07 Sep 2010 Posts: 336 Followers: 5 Kudos [?]: 600 [0], given: 136 Re: Products with Innovative and appealing design [#permalink] ### Show Tags 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. . _________________ +1 Kudos me, Help me unlocking GMAT Club Tests Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 6971 Location: Pune, India Followers: 2031 Kudos [?]: 12764 [0], given: 221 Re: Products with Innovative and appealing design [#permalink] ### Show Tags 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. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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Re: Products with Innovative and appealing design [#permalink]

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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]

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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]

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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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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Senior Manager Joined: 07 Sep 2010 Posts: 336 Followers: 5 Kudos [?]: 600 [0], given: 136 Re: Products with Innovative and appealing design [#permalink] ### Show Tags 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. Thanks _________________ +1 Kudos me, Help me unlocking GMAT Club Tests Intern Joined: 24 May 2012 Posts: 6 Concentration: Technology, Entrepreneurship Followers: 0 Kudos [?]: 4 [1] , given: 13 Re: Products with innovative and appealing designs relative to [#permalink] ### Show Tags 27 Jul 2013, 18:36 1 This post received KUDOS For the record, the source of this question is MGMAT CR 5th Edition and MGMAT has acknowledged in the errata that the correct answer is in fact B not C. Senior Manager Joined: 03 Dec 2012 Posts: 367 Followers: 0 Kudos [?]: 107 [0], given: 291 Re: Products with innovative and appealing designs relative to [#permalink] ### Show Tags 08 Oct 2013, 20:51 Can somebody explain why the answer is not E? Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 6971 Location: Pune, India Followers: 2031 Kudos [?]: 12764 [1] , given: 221 Re: Products with innovative and appealing designs relative to [#permalink] ### Show Tags 09 Oct 2013, 00:11 1 This post received KUDOS Expert's post mohnish104 wrote: Can somebody explain why the answer is not E? (E) The first is a factor used to rationalize a particular strategy; The second is a factor against that strategy. (E) is incorrect because the second bold statement is not a factor against the strategy to charge as much as possible but it is actually an alternative strategy - "to charge less". (B) gives you the correct answer. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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Joined: 10 Sep 2013
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Concentration: Strategy, Operations
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Re: Products with innovative and appealing designs relative to [#permalink]

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09 Oct 2013, 14:11
The question is from MGMAT CR 5th Edition guide and official answer is C.
(C) The first is a phenomenon that justifies a specific strategy; the second is that strategy.

However I m still not very sure about OA.
I think it should b B and this is how I derived it:-

(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.

As, Because design innovations are quickly copied by other manufacturers - first is a consideration that helps explained why companies increased their product's price in order to get maximum profit.
the best strategy to maximize overall profit from an innovative new design is to charge less than the greatest possible price. - As it states, its another strategy to maximize their profit.

Please tell me where I m wrong.
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Re: Products with innovative and appealing designs relative to [#permalink]

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10 Oct 2013, 00:08
fnumiamisburg wrote:
The question is from MGMAT CR 5th Edition guide and official answer is C.
(C) The first is a phenomenon that justifies a specific strategy; the second is that strategy.

However I m still not very sure about OA.
I think it should b B and this is how I derived it:-

(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.

As, Because design innovations are quickly copied by other manufacturers - first is a consideration that helps explained why companies increased their product's price in order to get maximum profit.
the best strategy to maximize overall profit from an innovative new design is to charge less than the greatest possible price. - As it states, its another strategy to maximize their profit.

Please tell me where I m wrong.

OA - C is errata. Correct answer is (B). Check this: products-with-innovative-and-appealing-designs-relative-to-136717.html#p1250728
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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Intern Status: GMAT Prep. MBA 15-17 Joined: 05 Mar 2013 Posts: 5 Location: Luxembourg Followers: 0 Kudos [?]: 10 [0], given: 17 Re: Products with innovative and appealing designs relative to [#permalink] ### Show Tags 16 Dec 2013, 13:09 I approached it this way: "Therefore" - a sign that the conclusion is coming. The second boldface is a conclusion and I looked for that in answer choices. "an alternative strategy endorsed by the argument" - the best choice among all the answers (B). Following this reasoning, first boldface, "consideration that helps explain the appeal of a certain strategy", fits perfectly - as it makes a correct link between 'certain strategy' and 'alternative strategy'. Hope this helps, MJ Manager Joined: 31 Mar 2013 Posts: 69 Location: United States Followers: 0 Kudos [?]: 26 [0], given: 109 Re: Products with innovative and appealing designs relative to [#permalink] ### Show Tags 10 Feb 2014, 21:26 Can someone please clarify why D is wrong? D seems to fit perfectly. Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 6971 Location: Pune, India Followers: 2031 Kudos [?]: 12764 [0], given: 221 Re: Products with innovative and appealing designs relative to [#permalink] ### Show Tags 10 Feb 2014, 23:33 HKHR wrote: Can someone please clarify why D is wrong? D seems to fit perfectly. Certain strategy - charge as much as possible for their new designs Appeal of the strategy (reason this strategy is applied) - BECAUSE DESIGN INNOVATIONS ARE QUICKLY COPIED BY OTHER MANUFACTURERS, Another strategy endorsed by the argument - TO CHARGE LESS THAN THE GREATEST POSSIBLE PRICE (D) The first is a consideration that demonstrates why a particular approach is flawed;... This is incorrect. The first bold statement does not demonstrate the flaw of the approach. It demonstrates the appeal of the approach. Companies charge as much as possible at the outset because innovations are quickly copied. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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Re: Products with innovative and appealing designs relative to [#permalink]

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11 Feb 2014, 09:47
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.

Thank you for your response Karishma. But I have a follow up question on D. If you look at the text in red, I feel it demonstrates why this particular approach is flawed. The text in blue suggests a way to amend this approach, which is to charge less than the greatest possible price. Any mistake in this interpretation?
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Re: Products with innovative and appealing designs relative to [#permalink]

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11 Feb 2014, 23:06
HKHR wrote:
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.

Thank you for your response Karishma. But I have a follow up question on D. If you look at the text in red, I feel it demonstrates why this particular approach is flawed. The text in blue suggests a way to amend this approach, which is to charge less than the greatest possible price. Any mistake in this interpretation?

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Re: Products with innovative and appealing designs relative to [#permalink]

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12 Feb 2014, 00:35
VeritasPrepKarishma wrote:
HKHR wrote:
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.

Thank you for your response Karishma. But I have a follow up question on D. If you look at the text in red, I feel it demonstrates why this particular approach is flawed. The text in blue suggests a way to amend this approach, which is to charge less than the greatest possible price. Any mistake in this interpretation?

If my interpretation is correct then option D is correct, right? I am sorry to ask so many questions but I am confused.
Re: Products with innovative and appealing designs relative to   [#permalink] 12 Feb 2014, 00:35

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