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A product that represents a clear technological advance over

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Director
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Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
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Re: A product that represents a clear technological advance over [#permalink]

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New post 21 Aug 2010, 21:42
To the original question (the image) - not the previous one. IMO : C :-D

Assumption = Premise
Consideration = Premise

A – “counter productive” is wrong
B – there is no support for first strategy
C – Hold
D – “rejected” is too far fetched. The first bold part is not rejected by argument
E – The second strategy is not “yet” adopted.

C it is.

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Re: A product that represents a clear technological advance over [#permalink]

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New post 21 Aug 2010, 21:57
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Consideration =premise
Assumption =premise

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.

Last edited by broall on 27 May 2017, 01:32, edited 1 time in total.
Merged topic. Please search before posting question.

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Re: A product that represents a clear technological advance over [#permalink]

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New post 21 Aug 2010, 23:18
I will go with B

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Re: A product that represents a clear technological advance over [#permalink]

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New post 22 Aug 2010, 02:14
No doubts...B is a clear winner

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Re: A product that represents a clear technological advance over [#permalink]

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New post 22 Aug 2010, 02:38
Its got to be B. Here I used the 3-2 elimination strategy, whether the the first bold-face is an assumption or a consideration. Also, it it clear that the second boldface is questions the strategy used and hence the answer to this Q should be B

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Re: A product that represents a clear technological advance over [#permalink]

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New post 22 Aug 2010, 19:23
I picked b ....but believe me spent abt 3-4 minutes ..awarded one for a good question

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Re: A product that represents a clear technological advance over [#permalink]

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New post 22 Aug 2010, 21:50
clear 3-2 split, the first is not an assumption but a consideration.

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Re: A product that represents a clear technological advance over [#permalink]

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New post 22 Aug 2010, 22:52
Thanks guys the OA is B !

A : “criticizes” is wrong. OUT. The argument does not criticize the first strategy.
B : Answer. The second bold face calls into question the wisdom of adopting the first strategy.
C : “justify” is wrong OUT. The opposite is true- the first strategy is called into question.
D : “endorses” is wrong. OUT. The opposite is true- the first strategy is called into question.
E : OUT. The second bold face is NOT the appeal of the first strategy.

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Re: A product that represents a clear technological advance over [#permalink]

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New post 23 Aug 2010, 08:18
B!

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New post 23 Aug 2010, 08:18
B!

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New post 27 Aug 2010, 08:03
B for me too.

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Re: A product that represents a clear technological advance over [#permalink]

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New post 27 Aug 2010, 13:11
B

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Re: A product that represents a clear technological advance over [#permalink]

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New post 03 Sep 2010, 23:47
+1 for B

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Re: A product that represents a clear technological advance over [#permalink]

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New post 25 Sep 2010, 02:24
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:shock: I m certainly going to guess randomly on boldface questions. Even if you understand the argument the answer choices are so badly written that it wastes a lot of valuable time.

whats wrong with C
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Re: A product that represents a clear technological advance over [#permalink]

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New post 18 Oct 2010, 07:08
Thanks for the explanations guys. C it is.

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Re: A product that represents a clear technological advance over [#permalink]

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New post 05 Jul 2011, 20:29
I got that rite... :)
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Re: A product that represents a clear technological advance over [#permalink]

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New post 05 Jul 2011, 21:24
gurpreetsingh wrote:
:shock: I m certainly going to guess randomly on boldface questions. Even if you understand the argument the answer choices are so badly written that it wastes a lot of valuable time.

whats wrong with C


:) I know! how i do it though is to break the question into 2 parts and match them with my paraphrased argument. the first boldface here says 'Because technological advances tend to be quickly surpassed' - it gives a reason why companies charge as high as a price as they can. auhtor concludes that is wrong because large profits by charging high prices make competition also want to make the product - basically, author is criticizing the 1st strategy and the second boldface is providing support to the author in criticizing the 1st strategy.
?
Lets try compare our paraphrase to options here:
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.
We said that the first boldface is a reason why companies adopt the strategy author doesnt like- of charging highest possible prices! description here matches - argument (author) is criticizing an action (charging highest prices) and boldface is providing an assumption (reason) why this strategy is adopted in 1st place!
Second boldface according to us provided a reason for author to believe that 1st stragety is incorrect and wont work. here the option says that 2nd boldface is the action the argument supports- clearly not! that is provided in the conclusion, 'consequently....'
thus this option is rejected
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.
First is a consideration (reason, basis) to explain the appeal of a stragety (why companies charge highest possible prices) - matches our understanding
Second is a consideration (reason, basis) to call into question the wisdom (why the author thinks that the 1st strategy is going to fail/is wrong)
Both Match. Correct option.
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.
First is an assumption( reason, basis) that is used to justify a startegy (correct - of charging highest possible prices) : Matches our paraphrase
Second : is a consideration (reason, basis) used to cast doubt (yes, it challenges) on that assumption (What?! hold on.. second doesnt cast doubt on the assumption, it casts doubt on the strategy! casting doubt on the assumption wil lmean that second is saying that technology is not surpassed quickly; second is not saying tht at all - it is saying tech is surpassed quickly, and higher prices will motivate competition to surpass it even more quickly!) see the difference? this doesnt match our paraphrase.
D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.
first is a consideration (reason, basis - yes) raised in support of a strategy (yes- of charging high prices) the argument endorses (NO! the argument doesnt support this strategy, it challenges it!) - Doesnt match
second presents grounds in support of that consideration (not really, second doesnt support 1st)

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.
first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect (no, on the contrary 1st is the reason the strategy is adopted)
secong presents appeal of that strategy - (no, second is presenting why that strategy is not good)
Note that if this option was reversed, it would be correct. first presents appeal of a strategy (why charge highest prices) and second presents why it is unlikely to work (comeptition will be motivated to quickly surpass)

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New post 11 Jul 2011, 23:32
Nice explanation vivesomnium . I first chose C and then realised why it's wrong.

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New post 01 Aug 2011, 13:36
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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 new 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:
B

Please also explain difference between assumption and consideration.
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Re: A product that represents a clear technological advance over [#permalink]

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New post 01 Aug 2011, 15:50
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Although I find this a ridiculously unreal question, I will go with B:

But large profits on the new product will give competitors a strong incentive to quickly match the new product’s capabilities.

Basically this part is trying to explain why the strategy described above is not well-reasoned and sound. Although companies are trying to make large profits when they still can, eventually competitors match the product's capabilities and offer it for a lower price. So this statement casts a doubt on the strategy initially stated.

Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can

The author introduces the first bold statement as an appealing strategy for firms which he later tries to oppose with this additional statement.

The only answer that comes closest to that is B : First statement introduces an appealing strategy, which might ultimately prove to be wrong.

A,D,E can be eliminated because each one of them contradicts in some way or another the statements in the body of the question. IMO the trap answer is C - however, I associate "tend to be" with a consideration rather than assumption, and I also like "explain the appeal of a certain strategy" more than "justify a certain strategy" as here nothing is justified but simply taken into consideration.

This is a hard question. Hope this helps a little :)

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Re: A product that represents a clear technological advance over   [#permalink] 01 Aug 2011, 15:50

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