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A product that represents a clear technological advance over

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Joined: 04 May 2006
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06 Jun 2008, 01:44
1
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Difficulty:

65% (hard)

Question Stats:

59% (01:28) correct 41% (01:09) wrong based on 957 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.

[Reveal] Spoiler: OA

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Last edited by Vyshak on 20 Jul 2017, 22:14, edited 5 times in total.
Corrected the options

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06 Jun 2008, 16:10
sondenso 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 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.

Goal - max profit.
Strategy - drive towards the goal of max profits.

A, B, C - Out
BF2 is not the strategy itself.

D: BF1 does explain the appeal as the technological advances are quickly surpassed, so charging max price makes sense.
BF2: gives support to the overall strategy by rasing a consideration to fine tune the strategy to charge less than the max price possible but still maxing profits.

E. BF2 does not match.

D

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06 Jun 2008, 17:27
Sunny143 wrote:
sondenso 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 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.

Goal - max profit.
Strategy - drive towards the goal of max profits.

A, B, C - Out
BF2 is not the strategy itself.

D: BF1 does explain the appeal as the technological advances are quickly surpassed, so charging max price makes sense.
BF2: gives support to the overall strategy by rasing a consideration to fine tune the strategy to charge less than the max price possible but still maxing profits.

E. BF2 does not match.

D

Nice guy, Sunny! OA is D! your reasoning is smart!
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07 Jun 2008, 18:04
Thanks Sondenso....

Thanks also for all the interesting boldface questions ...keep it up buddy...

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10 Jul 2009, 07:48
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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 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.

Last edited by hazelnut on 30 May 2017, 17:25, edited 3 times in total.
OA updated

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10 Jul 2009, 08:00
1
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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, 10:34
Yup B.

rashminet84 wrote:
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, 10:39
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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10 Jul 2009, 10:51
1
KUDOS
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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16 Jul 2009, 14:55
Can someone please explain the difference between B and D? How do we differentiate?

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16 Jul 2009, 17:23
acer2knight wrote:
Can someone please explain the difference between B and D? How do we differentiate?

the two portions are not in the same phase (note the usage of 'but' in the second boldface portion). B explains that they are out of phase, D says both are in sync
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Is this okay?

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18 Jul 2009, 09:11
Agree with B
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Consider kudos for the good post ...
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23 Jul 2009, 00:23
Should be B

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22 Aug 2009, 17:37
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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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Please give kudos if you enjoy the explanations that I have given. Thanks

Last edited by broall on 27 May 2017, 01:23, edited 1 time in total.
Merged topic. Please search before posting question.

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23 Aug 2009, 00:38
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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.

Last edited by mikeCoolBoy on 23 Aug 2009, 01:22, edited 1 time in total.

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23 Aug 2009, 00:53
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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, 00:57
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C sound good and above explanation is what I would vouch for

what is the OA ?
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23 Aug 2009, 01:03
1
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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 :
[Reveal] Spoiler:
D

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23 Aug 2009, 01:19
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, 21:57
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
[Reveal] Spoiler:
B

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Re: A product that represents a clear technological advance over   [#permalink] 30 Sep 2009, 21:57

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