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# A product that represents a clear technological advance over

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Intern
Joined: 05 Apr 2010
Posts: 11
Followers: 0

Kudos [?]: 0 [0], given: 1

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08 Sep 2010, 15:35
00:00

Difficulty:

(N/A)

Question Stats:

50% (01:47) correct 50% (01:34) wrong based on 2 sessions

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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.
[Reveal] Spoiler: OA
Senior Manager
Joined: 06 Jun 2009
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Re: 8 real PBT GMAT(2) [#permalink]

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08 Sep 2010, 15:45
BOLD parts ?
_________________

All things are possible to those who believe.

Re: 8 real PBT GMAT(2)   [#permalink] 08 Sep 2010, 15:45
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