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# A product that represents a clear technological advance over

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20 Jul 2012, 03:50
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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 new 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

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20 Jul 2012, 05:38
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thebigr002 wrote:
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 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.

Can someone please explain the method used to eliminate the choices.

I think it's a messed up question. None of the options work well.

The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.
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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Manager Status: Re-take.. The OG just loves me too much. Joined: 18 Jun 2012 Posts: 63 Location: India GMAT 1: 600 Q44 V29 WE: Information Technology (Consulting) Followers: 4 Kudos [?]: 51 [0], given: 48 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 20 Jul 2012, 06:17 VeritasPrepKarishma wrote: thebigr002 wrote: 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 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. Can someone please explain the method used to eliminate the choices. I think it's a messed up question. None of the options work well. The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out. In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work. Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price. _________________ Live Life the Way YOU Love It !! GmatPrep1 [10/09/2012] : 650 (Q42;V38) - need to make lesser silly mistakes. MGMAT 1 [11/09/2012] : 640 (Q44;V34) - need to improve quant pacing and overcome verbal fatigue. Current Student Joined: 02 Jul 2012 Posts: 21 Followers: 0 Kudos [?]: 2 [0], given: 0 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 21 Jul 2012, 13:23 thebigr002 wrote: VeritasPrepKarishma wrote: thebigr002 wrote: 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 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. Can someone please explain the method used to eliminate the choices. I think it's a messed up question. None of the options work well. The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out. In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work. Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price. I agree with VeritasPrepKarishma; this is a messed up question. Yes the ultimate strategy is to charge less than the maximum price, but B discusses the strategy of charging maximum. Thus, the second part of Choice B is incorrect. It is not a consideration raised to call into... wisdom.. it is the strategy itself. So if it stated "The first is a consideration raised to explain the appeal of a certain strategy; the second is that strategy" then it would be correct. Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7370 Location: Pune, India Followers: 2282 Kudos [?]: 15085 [0], given: 224 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 23 Jul 2012, 09:54 thebigr002 wrote: The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out. In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work. Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.[/quote] It is. Read the highlighted portion again. 'Charge LESS than greatest possible price' is the strategy endorsed by the argument. But another strategy is discussed before the one endorsed by the argument. This other strategy is to charge the maximum possible. The first boldface statement is raised to explain the appeal of this other strategy. The second boldface is actually this other strategy. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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16 Jul 2013, 19:03
VeritasPrepKarishma wrote:
thebigr002 wrote:
The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.

It is. Read the highlighted portion again. 'Charge LESS than greatest possible price' is the strategy endorsed by the argument.
But another strategy is discussed before the one endorsed by the argument. This other strategy is to charge the maximum possible. The first boldface statement is raised to explain the appeal of this other strategy. The second boldface is actually this other strategy.[/quote]
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03 Aug 2013, 06:38
It should be like first is a strategy that is in support of the conclusion; Second represent the strategy that the argument opposes.
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13 Aug 2013, 13:15
VeritasPrepKarishma wrote:
thebigr002 wrote:
The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.

It is. Read the highlighted portion again. 'Charge LESS than greatest possible price' is the strategy endorsed by the argument.
But another strategy is discussed before the one endorsed by the argument. This other strategy is to charge the maximum possible. The first boldface statement is raised to explain the appeal of this other strategy. The second boldface is actually this other strategy.[/quote]

I was stumped looking at all the choices. Mostly, to me ,half parts of them are correct and other half parts are wrong. Given that this is an official question, can we apprehend the occurance such questions in the real GMAT.
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13 Aug 2013, 21:07
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pavan2185 wrote:

I was stumped looking at all the choices. Mostly, to me ,half parts of them are correct and other half parts are wrong. Given that this is an official question, can we apprehend the occurance such questions in the real GMAT.

A rare question of OG/Prep may not be perfect but it is very unlikely that you will come across an ambiguous question in the actual test. Each and every question goes through multiple analysis and loads of testing before it is made live. That much thought is probably not given to every question they include in the OG/Prep.
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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Intern Joined: 02 Sep 2013 Posts: 1 Concentration: Marketing, Economics GMAT 1: 640 Q51 V23 Followers: 1 Kudos [?]: 1 [0], given: 1 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 18 Sep 2013, 10:38 1 This post was BOOKMARKED I believe the second boldface portion should be " But large profits on the new product will give competitors a strong incentive to quickly match the mew product’s capabilities, " not the original one. It makes sense that this sentence is a consideration raised to call into question the wisdom of adopting that strategy. Intern Joined: 28 Nov 2011 Posts: 5 Followers: 0 Kudos [?]: 2 [0], given: 8 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 11 Oct 2013, 06:13 [color=#0000ff] The second half of choice B is wrong. The main questionable part is "call into question" 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. [/color] GMAT Club Legend Joined: 01 Oct 2013 Posts: 10370 Followers: 996 Kudos [?]: 224 [2] , given: 0 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 07 Jun 2015, 01:37 2 This post received KUDOS Hello from the GMAT Club VerbalBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. GMAT Club Legend Joined: 01 Oct 2013 Posts: 10370 Followers: 996 Kudos [?]: 224 [0], given: 0 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 13 Sep 2016, 14:37 Hello from the GMAT Club VerbalBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. Director Joined: 10 Oct 2016 Posts: 558 Location: Viet Nam Followers: 9 Kudos [?]: 211 [0], given: 26 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 04 Nov 2016, 22:12 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 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. -> Incorrect 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. -> There is no doubt casted in assumption here, eliminated D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration. -> The argument doesnot support the strategy, eliminated 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. -> unlikely to achieve, means that the argument support this strategy? No, eliminated 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. -> The only one left. P/S: This question takes me 02:23, lots of time _________________ Manager Joined: 04 Sep 2016 Posts: 53 Followers: 0 Kudos [?]: 4 [0], given: 42 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 08 May 2017, 06:39 Query: Why is option C selected as OA in OG VR2 Q74 when Option B and C both have same text as second part? My approach: Step 1: identification of premise and conclusion: A product that represents a clear technological advance over competing products can generally command a high price. This statement is general fact. Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the maximum possible price for such a product. Presence of word ???because??? marks a causal effect. Here because of two causes : A (technological advances tend to be quickly surpassed) and B (companies want to make large profits while they still can), effect is many companies charge the maximum possible price for such a product BF1 is a fact that explains action taken by companies i.e. BF2 But large profits on the new product will give competitors a strong incentive to quickly match the new product???s capabilities. But indicates contrast and will give indicates prediction Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price. Conclusion marker consequently indicates final conclusion of argument. In first read, however the sentence after coma I.e. BF2 also seemed like a conclusion to me. Please help to clarify this part. Furthermore, here is my POE: A: not in line with my above points since BF1 supports BF2. Confused between B and C D: Rejected on grounds that BF1 is not an assumption but a fact E: BF 2 is not an outcome of strategy but it itself is a strategy. GMAT Club Verbal Expert Joined: 20 Nov 2016 Posts: 90 Followers: 25 Kudos [?]: 40 [0], given: 12 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 12 May 2017, 13:28 Quote: Query: Why is option C selected as OA in OG VR2 Q74 when Option B and C both have same text as second part? This is a different question, which is discussed in this thread: https://gmatclub.com/forum/a-product-th ... 57880.html _________________ www.gmatninja.com Join us for the verbal experts' live chat every Wednesday, 8 am PST/8:30 pm IST! Details available here. Subscribe to GMAT Question of the Day: E-mail | RSS Intern Joined: 27 Mar 2017 Posts: 7 Followers: 0 Kudos [?]: 0 [0], given: 2 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 22 May 2017, 21:05 Can someone please explain what exactly the word 'consideration' means in these CR questions ? Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7370 Location: Pune, India Followers: 2282 Kudos [?]: 15085 [0], given: 224 Re: A product that represents a clear technological advance over [#permalink] ### Show Tags 23 May 2017, 02:59 altairahmad wrote: Can someone please explain what exactly the word 'consideration' means in these CR questions ? The way it is used will tell you but usually, a "consideration" will be a premise. "The first is a consideration raised in support of a strategy the argument endorses" - a strategy the argument endorses will be the conclusion. A consideration in its support will be the premise. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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Re: A product that represents a clear technological advance over   [#permalink] 23 May 2017, 02:59
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