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# 1) A product that represents a clear technological advance

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Manager
Joined: 08 Apr 2004
Posts: 130

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26 Aug 2004, 03:35
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1) 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 new product will give competitors a strong incentive to quickly match the new productâ€™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.

2) City Official: At City Hospital, uninsured patients tend to have shorter stays and fewer procedures performed than do insured patients, even though insured patients, on average, have slightly less serious medical problems at the time of admission to the hospital than uninsured patients have. Critics of the hospital have concluded that<< the uninsured patients are not receiving proper medical care>>. However, <<this conclusion is almost certainly false>>. Careful investigation has recently shown two things: insured patients have much longer stays in the hospital than necessary, and they tend to have more procedures performed than are medically necessary.

In the city officialâ€™s argument, the two boldface portions play which of the following roles?

A. The first states the conclusion of the city officialâ€™s argument; the second provides support for that conclusion.
B. The first is used to support the conclusion of the city officialâ€™s argument; the second states that conclusion.
C. The first was used to support the conclusion drawn by hospital critics; the second states the position that the city officialâ€™s argument opposes.
D. The first was used to support the conclusion drawn by hospital critics; the second provides support for the conclusion of the city officialâ€™s argument.
E. The first states the position that the city officialâ€™s argument opposes; the second states the conclusion of the city officialâ€™s argument.

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Senior Manager
Joined: 22 Jun 2004
Posts: 391

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Location: Bangalore, India

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26 Aug 2004, 11:28
(1)B and (2)E.

In (1), I ruled out all the choices that state 'assumption' because assumption has to be an unstated premise. Thus of the remaining, B is the best.

In(2), I clearly noted that the first is a conclusion by the critics, which the author opposes - th conclusion of the argument. Thus, E supports the idea fully.

marine wrote:
1) 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 new product will give competitors a strong incentive to quickly match the new productâ€™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.

2) City Official: At City Hospital, uninsured patients tend to have shorter stays and fewer procedures performed than do insured patients, even though insured patients, on average, have slightly less serious medical problems at the time of admission to the hospital than uninsured patients have. Critics of the hospital have concluded that<< the uninsured patients are not receiving proper medical care>>. However, <<this conclusion is almost certainly false>>. Careful investigation has recently shown two things: insured patients have much longer stays in the hospital than necessary, and they tend to have more procedures performed than are medically necessary.

In the city officialâ€™s argument, the two boldface portions play which of the following roles?

A. The first states the conclusion of the city officialâ€™s argument; the second provides support for that conclusion.
B. The first is used to support the conclusion of the city officialâ€™s argument; the second states that conclusion.
C. The first was used to support the conclusion drawn by hospital critics; the second states the position that the city officialâ€™s argument opposes.
D. The first was used to support the conclusion drawn by hospital critics; the second provides support for the conclusion of the city officialâ€™s argument.
E. The first states the position that the city officialâ€™s argument opposes; the second states the conclusion of the city officialâ€™s argument.

_________________

Awaiting response,

Thnx & Rgds,
Chandra

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Director
Joined: 28 Dec 2005
Posts: 915

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12 Feb 2007, 02:46
Digging up some old bold face CRs. Agree with 1) B and 2) E.

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Director
Affiliations: FRM Charter holder
Joined: 02 Dec 2006
Posts: 726

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Schools: Stanford, Chicago Booth, Babson College

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12 Feb 2007, 09:56
B and E.

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12 Feb 2007, 09:56
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# 1) A product that represents a clear technological advance

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