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A product that represents a clear technological advance over

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

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

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New post 02 May 2017, 01:53
Rule out A and C as the first bold face line is defnitely not an assumption.

Between B,D,E

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.

technological advances tend to be quickly surpassed is defnitely not a consideration to show that a certain strategy is unlikely to achieve the intended effect since the second bold face does this by questioning the wisdom of such a approach.

Eliminate

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 is a consideration raised in support of a strategy the argument endorses - This does not support the strategy the argument endorses which is to maximize overall profit from a new product it is best is to charge less than the greatest possible price.

Eliminate

B stands out.

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 first is a consideration raised to explain the appeal of a certain strategy ->Yes it is since the first startegy thats being discussed (not what the argument finally endorses) is that a product that represents a clear technological advance over competing products can generally command a high price.

the second is a consideration raised to call into question the wisdom of adopting that strategy-> large profits on the new product will give competitors a strong incentive to quickly match the mew product's capabilities questions the wisdom of the first strategy presented which is that a product must be charged the highest price possible if it technolgically the most advanced in the market.
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Re: A product that represents a clear technological advance over [#permalink]

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

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

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New post 22 May 2017, 21:05
Can someone please explain what exactly the word 'consideration' means in these CR questions ?
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Re: A product that represents a clear technological advance over [#permalink]

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

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New post 23 May 2017, 02:59
This topic have been merged with: http://gmatclub.com/forum/topic-139723.html
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Re: A product that represents a clear technological advance over [#permalink]

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New post 18 Jun 2017, 11:23
altairahmad wrote:
Can someone please explain what exactly the word 'consideration' means in these CR questions ?



From experience, a consideration is a factual reasoning/ circumstantial evidence behind a position.
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Re: A product that represents a clear technological advance over [#permalink]

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New post 09 Jul 2017, 00:46
Merged topics. Please, search before posting questions!
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Re: A product that represents a clear technological advance over [#permalink]

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New post 23 Jul 2017, 03:20
Hi ,

Can anyone please explain what is the conclusion here? Unfortunately, I find none and completely lost in between. Also, please suggest how to approach such kind of question.
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Re: A product that represents a clear technological advance over [#permalink]

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New post 09 Dec 2017, 21:44
Four Step Process:

1. Identify question. Bold face.

2. Deconstruct argument.
- General rule
- Exception
- Motivation for following general rule
- Drawback of general rule

The exception represents a specific single strategy that according to the author, will maximize profit. Therefore this exception represents the conclusion.

3. Let's look for an answer choice that shows:
i. conclusion
ii. drawback to general rule

4. Focus on the role of the first boldface
A: Keep
B: Keep
C: Keep
D: Keep
E: Eliminate. The argument stated this is a strategy that is more effective than the strategy suggested by the general rule

Let's work with the remaining choices and focus on the role of the second bold face:
A: Maybe
B: The second boldface is a reason to reject the alternate position. The second boldface is not the alternate position. Eliminate
C: The second boldface is a drawback to using the max price approach, not the "less than max price" approach. Eliminate
D: The goal is still to maximize profit. This choice doesn't represent this at all. Eliminate.

My selection: Choice A.
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Re: A product that represents a clear technological advance over [#permalink]

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New post 13 Feb 2018, 23:39
please help me explain difference between options B and D.
what is assumption,strategy,,,,and claim here,,,

could not differentiate. Always failing in bold face CR questions
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Re: A product that represents a clear technological advance over [#permalink]

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New post 20 Feb 2018, 11:41
priya sri wrote:
please help me explain difference between options B and D.
what is assumption,strategy,,,,and claim here,,,

could not differentiate. Always failing in bold face CR questions

Quote:
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 maximum possible price for 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.

With any BF question, start with the conclusion, if possible: "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price."

Now let's look at the argument WITHOUT worrying about the BF:

  • "A product that represents a clear technological advance over competing products can generally command a high price." - If your company comes up with a technologically advanced product, you can charge 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 maximum possible price for such a product." - You can charge a high price because your product has a technological advantage over competing products. You assume that whatever technological advantage you have will soon be surpassed. Until that happens, you want to charge as much as possible to immediately maximize your profits.
  • "But large profits on the new product will give competitors a strong incentive to quickly match the new product's capabilities." - If you charge the maximum possible price to maximize your profits, competing companies will see how much money you are making and say, "Wow, we should do something like that too!" By maximizing your own profits, you are giving competing companies an incentive to quickly "catch up" and make a product with similar capabilities.
  • This implies that if, instead, you DON'T try to maximize profits and DON'T charge the highest possible price, competing companies will have less incentive to copy you. That will allow you to enjoy your technological advantage for a longer period of time and, according to the author, maximize your profits in the long run.

So most companies tend to try to maximize profits immediately by charging the highest possible price. According to the author, they would make more money in the long run by charging less than the greatest possible price.

Once you understand the argument, you can look back at the BF portions:

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

This is the reason why companies tend to charge the highest possible price. In other words, this explains the appeal of a certain strategy (the strategy of charging the highest possible price). But the author does NOT endorse that strategy. The author argues that companies should charge LESS than the greatest possible price.

Looking at choice (D), the first BF portion is "a consideration raised in support of a strategy", but it is not a strategy that the argument endorses. (D) must be eliminated.

Choice (B) accurately describes the first BF portion as "a consideration raised to explain the appeal of a certain strategy"--not the strategy endorsed by the author, but the strategy that many companies employ (charging the highest possible price).

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

This explains how the strategy that many companies employ (charging the highest possible price) could backfire. So the first BF explains the appeal of the highest-price strategy, and the second BF portion explains why adopting that strategy might be a bad idea. In other words, the second BF portion "is a consideration raised to call into question the wisdom of adopting that strategy." Again, choice (B) is spot on.

As for choice (D), the "consideration" is the first BF portion. The second BF portion does not support the first BF portion, so (D) doesn't work.

(B) is the best answer.
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Re: A product that represents a clear technological advance over   [#permalink] 20 Feb 2018, 11:41

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