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# A product that represents a clear technological advance over

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Manager
Joined: 07 Jun 2006
Posts: 109

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06 Nov 2006, 11:15
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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 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.
Manager
Joined: 21 Aug 2006
Posts: 148

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06 Nov 2006, 11:53
_________________

Neelabh Mahesh

Senior Manager
Joined: 17 Oct 2006
Posts: 433

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06 Nov 2006, 12:04
I will choose B
VP
Joined: 21 Mar 2006
Posts: 1127
Location: Bangalore

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06 Nov 2006, 22:18
B for me.

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. - The second is not the course of action endorsed by the argument. OUT
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. - RIGHT
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. - The second BF does not case a doubt on the assumption, but does so on the strategy. OUT
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 first BF does not support the first one. OUT
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. - Clearly OUT
Director
Joined: 17 Jul 2006
Posts: 706

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06 Nov 2006, 22:20
I think we have seen this before.

It's B.
Senior Manager
Joined: 01 Oct 2006
Posts: 495

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06 Nov 2006, 22:48
I would choose B.

This example is slightly different from one that i got on GMATPrep which shos that one should very careful while answering questions on Gmat. Gmat tends to ask the same in different ways.
Senior Manager
Joined: 28 Aug 2006
Posts: 304

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06 Nov 2006, 23:45
06 Nov 2006, 23:45
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