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A product that represents a clear technological advance over competing

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

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A product that represents a clear technological advance over competing products can generally command a high price. Surprisingly, perhaps, the strategy to maximize overall profits from a new product is to charge less than the maximum price the market will bear. Many companies charge the maximum possible price for such a product, because they want to make as much profit as they can and technological advances tend to be quickly surpassed. The drawback is that large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities.

In the argument above, the two portions in boldface play which of the following roles?

(A) The first is the position that the argument advocates; the second presents grounds for rejecting an alternate position.
(B) The first is the position that the argument advocates; the second is an alternative position that the argument rejects.
(C) The first presents a strategy for achieving a certain goal, the second presents a drawback to that strategy.
(D) The first presents a strategy for achieving a certain goal, the second presents grounds for preferring a different goal.
(E) The first presents a strategy that, according to the argument, is ineffective; the second presents a way of improving the effectiveness of that strategy.

GMATPrep Code : VCR003941

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[Reveal] Spoiler: OA

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

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New post 07 Aug 2013, 07:45
Structure of the argument:
Premise A product that represents a clear technological advance over competing products can generally command a high price.
Bold face Surprisingly,perhaps, the strategy to maximize overall profits from a new product is to charge less than the maximum price the market will bear.<===This is what the argument proposes.
A second strategy is presented Many companies charge the maximum possible price for such a product,because they want to make as much profit as they can and technological advances tend to be quickly surpassed.
Bold face The drawback is that large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities<== this is a drawback of the alternative strategy.


In the argument above, the boldface play which of the following roles?

A) The first is the position that the argument advocates (CORRECT);the second presents grounds for rejecting an alternate position(CORRECT).

B) The first is the position that the argument advocates(CORRECT); the second is an alternative position that the argument rejects (the second is NOT the position, is a drawback of the position).

C) The first presents a strategy for achieving a certain goal (seems fine),the second presents a drawback to that strategy (incorrect, as the drawback is of the alternative strategy, not of the one presented in the first BF);

D)The first presents a strategy for achieving a certain goal (seems fine) ,the second presents grounds for preferring a different goal (the second is not a goal).

E)The first presents a strategy that,according to the argument, is ineffective (wrong);the second presents a way of improving the effectiveness of that strategy (of course incorrect, the second BF is not anything like this).
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Re: A product that represents a clear technological advance over competing [#permalink]

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New post 07 Aug 2013, 07:47
12bhang wrote:
A product that represents a clear technological advance over competing products can generally command a high price.
Surprisingly,perhaps, the strategy to maximize overall profits from a new product is to charge less than the maximum price the market will bear.
Many companies charge the maximum possible price for such a product,because they want to make as much profit as they can and technological advances tend to be quickly surpassed. The drawback is that large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities

In the argument above, the boldface play which of the following roles?

A) The first is the position that the argument advocates;the second presents grounds for rejecting an alternate position.

B) The first is the position that the argument advocates; the second is an alternative position that the argument rejects.

C) The first presents a strategy for achieving a certain goal,the second presents a drawback to that strategy;

D)The first presents a strategy for achieving a certain goal,the second presents grounds for preferring a different goal

E)The first presents a strategy that,according to the argument, is ineffective;the second presents a way of improving the effectiveness of that strategy.


[Reveal] Spoiler:
if you need discussion ..always put that in spoiler....and will suggest that its always better to search before posting...in order to avoid duplicate thread THANKS


A) The first is the position that the argument advocates;the second presents grounds for rejecting an alternate position.
CORRECT
B) The first is the position that the argument advocates; the second is an alternative position that the argument rejects.

C) The first presents a strategy for achieving a certain goal,the second presents a drawback to that strategy;

D)The first presents a strategy for achieving a certain goal,the second presents grounds for preferring a different goal

E)The first presents a strategy that,according to the argument, is ineffective;the second presents a way of improving the effectiveness of that strategy

RED HIGHLITE:WRONG
GREEN HIGHLITE : CORRECT
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Re: A product that represents a clear technological advance over competing [#permalink]

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New post 07 Aug 2013, 20:43
Though I was able to get this question right, I have a small doubt.
Going through the passage:


1) A product that represents a clear technological advance over competing products can generally command a high price.- this is merely a fact statement.

2)Surprisingly,perhaps, the strategy to maximize overall profits from a new product is to charge less than the maximum price the market will bear.
Now for this statement, I do not see that the author explicitly advocates the use of this strategy. He is merely stating it.


3)Many companies charge the maximum possible price for such a product,because they want to make as much profit as they can and technological advances tend to be quickly surpassed
This statement gives the reason why the companies adopt a certain strategy.

4)The drawback is that large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities
The final statement provides a drawback of a strategy that companies generally adopt.

The only clue that the author prefers one over another is the mention of the word "drawback". Also, I could not find any conclusion in this argument either. Apart from statement 2 that comes close to being a conclusion.
The reason that i thought it wasnt a conclusion is that i could not see it being derived from anything. the author merely stated it as he would a fact.

can you help with this?

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

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New post 07 Aug 2013, 20:51
12bhang wrote:
Though I was able to get this question right, I have a small doubt.
Going through the passage:


1) A product that represents a clear technological advance over competing products can generally command a high price.- this is merely a fact statement.

2)Surprisingly,perhaps, the strategy to maximize overall profits from a new product is to charge less than the maximum price the market will bear.
Now for this statement, I do not see that the author explicitly advocates the use of this strategy. He is merely stating it.


3)Many companies charge the maximum possible price for such a product,because they want to make as much profit as they can and technological advances tend to be quickly surpassed
This statement gives the reason why the companies adopt a certain strategy.

4)The drawback is that large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities
The final statement provides a drawback of a strategy that companies generally adopt.

The only clue that the author prefers one over another is the mention of the word "drawback". Also, I could not find any conclusion in this argument either. Apart from statement 2 that comes close to being a conclusion.
The reason that i thought it wasnt a conclusion is that i could not see it being derived from anything. the author merely stated it as he would a fact.

can you help with this?

i am just rearranging the statements.

A product that represents a clear technological advance over competing products can generally command a high price.Many companies charge the maximum possible price for such a product,because they want to make as much profit as they can and technological advances tend to be quickly surpassed. The drawback is that large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities====HENCE=====
Surprisingly,perhaps, the strategy to maximize overall profits from a new product is to charge less than the maximum price the market will bear.

is this making sense now..
clearly the last part IMO seems to be conclusion.
premise:large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities.

hope this helps
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Re: A product that represents a clear technological advance over competing [#permalink]

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New post 14 Jan 2014, 05:44
A product that represents a clear technological advance over competing products can generally command a high price.
Surprisingly,perhaps, the strategy to maximize overall profits from a new product is to charge less than the maximum price the market will bear.
Many companies charge the maximum possible price for such a product,because they want to make as much profit as they can and technological advances tend to be quickly surpassed. The drawback is that large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities

Numero uno: let's figure out the situation

- general rule
B - general strategy is outlined
- tells us why the strategy outlined above is not applied
B - points out a major drawback for rejecting the general strategy

Do the two bolded portions agree or disagree? They agree. Hunt for the correct answer.


In the argument above, the boldface play which of the following roles?

A) The first is the position that the argument advocates;the second presents grounds for rejecting an alternate position.
Reflects exactly what I wrote in my scheme. Hold.

B) The first is the position that the argument advocates; the second is an alternative position that the argument rejects.
We said the two statements agree, they go in the same direction, thus the argument doesn't reject the second position, if the argument advocates the first he must advocate the second one as well

C) The first presents a strategy for achieving a certain goal,the second presents a drawback to that strategy.
Once again the two statements agree thus this answer choice is illogical

D)The first presents a strategy for achieving a certain goal,the second presents grounds for preferring a different goal
Same here, different goal? why...they basically agree.

E)The first presents a strategy that,according to the argument, is ineffective;the second presents a way of improving the effectiveness of that strategy.
If the second bolded portion points out a drawback for not sticking to the general rule stated in boldface one, it is illogical to say that boldface one is ineffective.
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Re: A product that represents a clear technological advance over competing [#permalink]

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New post 19 Sep 2016, 15:23
12bhang wrote:
A product that represents a clear technological advance over competing products can generally command a high price.
Surprisingly, perhaps, the strategy to maximize overall profits from a new product is to charge less than the maximum price the market will bear.
Many companies charge the maximum possible price for such a product, because they want to make as much profit as they can and technological advances tend to be quickly surpassed. The drawback is that large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities

In the argument above, the boldface play which of the following roles?

A) The first is the position that the argument advocates;the second presents grounds for rejecting an alternate position.

B) The first is the position that the argument advocates; the second is an alternative position that the argument rejects.

C) The first presents a strategy for achieving a certain goal,the second presents a drawback to that strategy;

D)The first presents a strategy for achieving a certain goal,the second presents grounds for preferring a different goal

E)The first presents a strategy that,according to the argument, is ineffective;the second presents a way of improving the effectiveness of that strategy.

This is the question. It contains a rare example of a split infinitive in official material, "to quickly develop."
RichaChampion wrote:
#1 A product that represents a clear technological advance over competing products can generally command a high price.
#2 Surprisingly, perhaps, the strategy to maximize overall profit from a new product is to charge than the greatest price the market will bear.
#3 Many companies charge the maximum possible price for such a product because they want to make as much profit as they can and technological advances tend to be quickly surpassed.
#4 The drawback is that large profits on the new product give competitors a strong incentive to quickly match the new product's capabilities.

#1 Fact/Evidence
#2 Position/Judgement
#3 Fact/Evidence
#4 Authors Position or Main Conclusion.

BF1: Conclusion, but intermediate one. Intermediate conclusions are also alternative positions.
BF2: Main Conclusion.

Based on our understanding of the argument and BF1 we will get this -

A. The first is the position the argument advocates; the second presents grounds for rejecting an alternative position.
B. The first is the position the argument advocates; the second is an alternative position that the argument rejects.
C. The first presents a strategy for achieving a certain goal; the second presents a drawback to that strategy.
D. The first presents a strategy for achieving a certain goal; the second presents grounds for preferring a different goal.
E. The first presents a strategy that, according to the argument, is ineffective; the second presents a way of improving the effectiveness of that strategy.

Moving forward and based on BF2 -

A. The first is the position the argument advocates; the second presents grounds for rejecting an alternative position.
B. The first is the position the argument advocates; the second is an alternative position that the argument rejects
C. The first presents a strategy for achieving a certain goal; the second presents a drawback to that strategy
D. The first presents a strategy for achieving a certain goal; the second presents grounds for preferring a different goal
E. The first presents a strategy that, according to the argument, is ineffective; the second presents a way of improving the effectiveness of that strategy.

Mike Mc Garry sir,
Please see if I have done analysis in the right direction. It will be great sir If you can do more analysis on the correct answer choice.

Dear RichaChampion,

I'm happy to respond. :-) I finally have a little time to devote to this.

I would say the first statement is a little more ambiguous: we could talk about it as the "position the argument advocates," or we could say that is it is "a strategy for achieving a certain goal." The only one that clearly can be eliminated on the basis of the first BF statement is (E), which is completely wrong.

Among the answer choices, there relatively uniformity in the evaluations of the first BF statement, but wild diversity in evaluations of the second. That's really going to be the basis of the decision.
The second BF is part of an argument against something, so (C) & (D) & (E) are all wrong. The subtle split is between (A) & (B)---that's probably what confuses most students. Technically, the alternate position is simply "charge the maximum profit," and the 2nd BF gives us grounds for rejecting this. I believe you understood all of this.

Does all this make sense?
Mike :-)
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A product that represents a clear technological advance over competing [#permalink]

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New post 02 Dec 2017, 00:42
12bhang wrote:
A product that represents a clear technological advance over competing products can generally command a high price. Surprisingly, perhaps, the strategy to maximize overall profits from a new product is to charge less than the maximum price the market will bear. Many companies charge the maximum possible price for such a product, because they want to make as much profit as they can and technological advances tend to be quickly surpassed. The drawback is that large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities.


In the argument above, the two portions in boldface play which of the following roles?

Let me help in this BoldFace question! :-)
Quote:
A product that represents a clear technological advance over competing products can generally command a high price.

This is a general statement written in a way (by using the term "generally") that suggests that it is setting a context for the author to refute on OR disagree maybe surprisingly or willingly
Quote:
Surprisingly, perhaps, the strategy to maximize overall profits from a new product is to charge less than the maximum price the market will bear.

This is the STRATEGY or POSITION or THE GOAL of the author, which is well supported by author
Quote:
Many companies charge the maximum possible price for such a product, because they want to make as much profit as they can and technological advances tend to be quickly surpassed.

THIS IS THE COUNTER STRATEGY or COUNTER POSITION or AN ALTERNATE GOAL to the author's AND is against the author's support
Quote:
The drawback is that large profits on the new product give competitors an incentive to quickly develop a product to match the rival product's capabilities.

Reason by the author why the alternate strategy will NOT be beneficial in long term

Here is my analysis for every option in detail :

(A) The first is the position that the argument advocates; the second presents grounds for rejecting an alternate position.
CORRECT, in terms with our analysis above!

(B) The first is the position that the argument advocates; the second is an alternative position that the argument rejects.
Here, the second statement is wrong. The second is the reason for rejecting the alternative position AND the second is not the ALTERNATIVE POSITION itself.

(C) The first presents a strategy for achieving a certain goal, the second presents a drawback to that strategy.
The second statement is wrong here again. The second presents a drawback to the alternate strategy AND not that strategy itself which author supports.

(D) The first presents a strategy for achieving a certain goal, the second presents grounds for preferring a different goal.
The second statement is wrong here again. The second presents a reason for rejecting a different goal AND not preferring a different goal.

(E) The first presents a strategy that, according to the argument, is ineffective; the second presents a way of improving the effectiveness of that strategy.
Nope, the first statement is wrong itself. Correct would be -- The first presents a strategy that, according to the argument, is effective; Second statement is even wrong as discussed in the previous option statements.

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