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A product that represents a clear technological advance over

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New post 12 Jul 2011, 00:32
Nice explanation vivesomnium . I first chose C and then realised why it's wrong.
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New post 01 Aug 2011, 14:36
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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.


Please also explain difference between assumption and consideration.
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New post 01 Aug 2011, 16:50
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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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New post 01 Aug 2011, 17:59
rossiankov wrote:
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 :)


Thanks for your try and approach. Question is from GMATPREP so not unrealistic, it is definiatly hard.
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New post 01 Aug 2011, 23:14
i see that same problem is posted on gmatclub

prep-bf-65020.html

options are different. B in the above link shows a different view compared with the B in rphardu's post..
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New post 01 Aug 2011, 23:29
B reflects the role of the statements in the argument
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New post 15 Aug 2011, 08:24
First, I would try to eliminate any choice if I can. Here, I am very sure that, first statment is not an assumption, so eliminate A and C

Second, Try to get the tone of the first statement. Here I see, first statement is trying to have some positive effect on the argument, so I would eliminate any option which is attributing negative tone to First Statement. So eliminate E

So, we are remaining with B and D.

Now, I would take Second statement as well into consideration and compare its tone with first statement's tone. Here, I find impacts of both of these on the conclusion (the strategy). So I can eliminate D as well because it says both of these statements are going in the same direction (support).

So I remain with B, which is also the right answer
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New post 12 Sep 2011, 22:49
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A. Can someone explain clearly why it is C?
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New post 14 Sep 2011, 04:58
C is wrong as it mentions that second bold phrase is a consideration doubting the first bold phrase. However, the second bold phrase only talks about the previous sentence (about profit making). There is no doubt cast on the first bold phrase in the whole argument.

B is best option since the second phrase talks about a way in which competitors can cash in in terms of price and quickly reaching similar product qualities. (calls into question the strategy adopted by the companies that charge high prices)
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New post 26 Dec 2011, 11:45
B as its what is given in bold text
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New post 05 Feb 2012, 20:52
A tough question.
I got down with D as my asnwer, but it looks like its wrong :(
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New post 07 Feb 2012, 23:15
A lot of times for these questions you need to look at the POV or the argument of the paragraph. The argument and conclusion is it is not a good idea to charge the greatest possible price for new products.
The first sentence tells us a reason WHY you SHOULD charge the greatest possible price. Therefore first sentence DOES NOT support the argument of charing Less than greatest possible price.

Using the same logic it is easy to see that B is the answer.
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New post 08 Feb 2012, 01:18
Narrowed it down to B and E. E mentions EXPLAINS which is not the case. The new point is a consideration which calls into question the rationale, therefore the answer is B.
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New post 09 Feb 2012, 09:01
The answer should be B.

A. It is not an assumption, it is a fact. A out
C. Again first boldface is not an assumption. C out
D. The argument does not endorse the opinion, it is actually providing evidence against it. D out
E. This is the other way around. The appeal is explained first. Other reasons as well but this should be enough to eliminate this option.

B. Yes the first boldface is a consideration that shows the reason for doing a certain activity. The second advises against it by providing evidence. B it is !
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New post 25 Mar 2012, 11:12
mikeCoolBoy wrote:
Whenever you see a boldface question you should start finding the premises, subconclusions and conclusion of the argument and asking yourself, do the premises support the conclusion?, does this premise support the author conclusion or a subconclusion that the author rejects?, and so on.

Premise: A product that represents a clear technological advance over competing products can generally command a high price.

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

subconclusion: many companies charge the greatest price for such a product

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

conclusion: the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.

Before going to the answer choices, you may want to rephrase what could be the role of the bold-face portions.

technological advances tend to be quickly surpassed is used to support the subconclusion that many companies charge the greatest price for such a product. However, the author seems to not agree with this policy and recommends that a company charge less than the greatest possible price.

So a rephrase could be. The first is evidence to support a strategy contrary to the author conclusion.

A) This could sound OK with the rephrase. However, the strategy is not counterproductive because technological advances tend to be quickly surpassed but because large profits on the new product will give competitors a strong incentive to quickly match the new product’s capabilities
So A is out.

B) the subconclusion is contrary to the argument, so we can eliminate B.

C) this is close to the rephrase but for the part talking about the rejection. The first part supports the second part (subconclusion)
This is the correct answer choice.

D) the author does not reject the first bold face part.
D is out

E) here you should have clear that the goal of the author is to maximize the profits, as is stated in the conclusion "the strategy to maximize overall profit".

So the argument does not reject the goal that the boldfaces parts seek to achieve.


Real nice explanation!

The only thing I might add is that in answer choice E, the second part of the answer choice does not express the intended outcome of the strategy, but it is the strategy itself.
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New post Updated on: 27 May 2017, 02:25
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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.

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Originally posted by thebigr002 on 20 Jul 2012, 03:50.
Last edited by broall on 27 May 2017, 02:25, edited 1 time in total.
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New post 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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New post 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.
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New post 21 Jul 2012, 13:23
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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.
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New post 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.
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