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# A product that represents a clear technological advance over

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Updated on: 25 Feb 2018, 00:43
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62% (01:27) correct 38% (01:15) wrong based on 1354 sessions

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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 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.

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Originally posted by sondenso on 06 Jun 2008, 02:44.
Last edited by hazelnut on 25 Feb 2018, 00:43, edited 6 times in total.
Corrected the options
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10 Jul 2009, 09:00
2
B imo

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. (it is actually based 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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10 Jul 2009, 11:51
1
Lets take example of choice A.
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.

Take a look at the first part, see if the first boldfaced is really an assumption.
Similarly check if the second part represents a course of action.

2-3 choices will go off.
Then you need to check the semantics:)

mayankseth10 wrote:
I hate these.
It's one of those question types where I get confused between all 5 options.

But yes, Rashmine's reasoning above is appealing....... I would go with B.

But can anyone explain a simple approach of dealing these type of CRs....... or a link where this has already been done would also suffice.
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Updated on: 23 Aug 2009, 02:22
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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.

Originally posted by mikeCoolBoy on 23 Aug 2009, 01:38.
Last edited by mikeCoolBoy on 23 Aug 2009, 02:22, edited 1 time in total.
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23 Aug 2009, 01:53
1
mikeCoolBoy wrote:
C) this is close to the rephrase but for the part talking about the rejection. The first part supports the second part (subconclusion)

mikeCoolBoy
I agree with C , and this is actually the way to deal with Boldface questions, else we can't answer them. I have seen a problem with the same argument but different sentences bolded. if someone finds it post it here. Would be helpful to discuss them under the same thread..
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23 Aug 2009, 01:57
1
C sound good and above explanation is what I would vouch for

what is the OA ?
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23 Aug 2009, 02:03
1
Here is the question with the same arguement , with different sentences bolded, If one understands the first question, then this question would be very easy.

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 a consideration that has been raised to argue that a certain strategy is counterproductive; the second presents that strategy.

(B) The first is a consideration raised to support the strategy that the argument recommends; the second presents that strategy.

(C) The first is a consideration raised to explain the appeal of a certain strategy; the second presents that strategy.

(D) the first is a consideration raised to explain the appeal of a certain strategy; the second is another consideration offered to support the stratregy

E) The first is a consideration that has been used to justify pursuing a goal that the argument rejects; the second presents a course of action that has been adopted in pursuit of that goal.

OA :
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23 Aug 2009, 02:19
crejoc wrote:
mikeCoolBoy wrote:
C) this is close to the rephrase but for the part talking about the rejection. The first part supports the second part (subconclusion)

mikeCoolBoy
I agree with C , and this is actually the way to deal with Boldface questions, else we can't answer them. I have seen a problem with the same argument but different sentences bolded. if someone finds it post it here. Would be helpful to discuss them under the same thread..

You're right I forgot to write my answer. I'll do so next time.
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30 Sep 2009, 22:57
Here you go

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

OA
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21 Aug 2010, 22:42
To the original question (the image) - not the previous one. IMO : C

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.

perfectstranger wrote:
I've got troubles to answer some of the gmat prep questions. The reasoning will be appreciated with kudos . Thanks for the help
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Updated on: 27 May 2017, 02:32
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3
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.

Originally posted by nusmavrik on 21 Aug 2010, 22:57.
Last edited by broall on 27 May 2017, 02:32, edited 1 time in total.
Merged topic. Please search before posting question.
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22 Aug 2010, 03:14
No doubts...B is a clear winner
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22 Aug 2010, 03:38
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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22 Aug 2010, 20:23
I picked b ....but believe me spent abt 3-4 minutes ..awarded one for a good question
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22 Aug 2010, 22:50
clear 3-2 split, the first is not an assumption but a consideration.
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22 Aug 2010, 23:52
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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25 Sep 2010, 03:24
1
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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18 Oct 2010, 08:08
Thanks for the explanations guys. C it is.
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05 Jul 2011, 21:29
I got that rite...
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05 Jul 2011, 22:24
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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)
Re: A product that represents a clear technological advance over &nbs [#permalink] 05 Jul 2011, 22:24

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