GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 17 Oct 2019, 18:52

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

A product that represents a clear technological advance over competing

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Manager
Manager
avatar
Joined: 04 Nov 2012
Posts: 50
Schools: NTU '16 (A)
A product that represents a clear technological advance over competing  [#permalink]

Show Tags

New post Updated on: 12 Oct 2018, 03:48
5
21
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

59% (01:57) correct 41% (01:55) wrong based on 699 sessions

HideShow timer Statistics

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

Similar question LINK1 & LINK2

Originally posted by 12bhang on 07 Aug 2013, 08:35.
Last edited by Bunuel on 12 Oct 2018, 03:48, edited 1 time in total.
Renamed the topic and edited the question.
VP
VP
User avatar
Status: Far, far away!
Joined: 02 Sep 2012
Posts: 1019
Location: Italy
Concentration: Finance, Entrepreneurship
GPA: 3.8
GMAT ToolKit User
Re: A product that represents a clear technological advance over competing  [#permalink]

Show Tags

New post 07 Aug 2013, 08:45
1
2
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).
_________________
It is beyond a doubt that all our knowledge that begins with experience.
Kant , Critique of Pure Reason

Tips and tricks: Inequalities , Mixture | Review: MGMAT workshop
Strategy: SmartGMAT v1.0 | Questions: Verbal challenge SC I-II- CR New SC set out !! , My Quant

Rules for Posting in the Verbal Forum - Rules for Posting in the Quant Forum[/size][/color][/b]
Director
Director
User avatar
Joined: 14 Dec 2012
Posts: 704
Location: India
Concentration: General Management, Operations
GMAT 1: 700 Q50 V34
GPA: 3.6
GMAT ToolKit User
Re: A product that represents a clear technological advance over competing  [#permalink]

Show Tags

New post 07 Aug 2013, 08:47
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.


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
_________________
When you want to succeed as bad as you want to breathe ...then you will be successfull....

GIVE VALUE TO OFFICIAL QUESTIONS...



GMAT RCs VOCABULARY LIST: http://gmatclub.com/forum/vocabulary-list-for-gmat-reading-comprehension-155228.html
learn AWA writing techniques while watching video : http://www.gmatprepnow.com/module/gmat-analytical-writing-assessment
: http://www.youtube.com/watch?v=APt9ITygGss
Manager
Manager
avatar
Joined: 04 Nov 2012
Posts: 50
Schools: NTU '16 (A)
Re: A product that represents a clear technological advance over competing  [#permalink]

Show Tags

New post 07 Aug 2013, 21:43
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?
Director
Director
User avatar
Joined: 14 Dec 2012
Posts: 704
Location: India
Concentration: General Management, Operations
GMAT 1: 700 Q50 V34
GPA: 3.6
GMAT ToolKit User
Re: A product that represents a clear technological advance over competing  [#permalink]

Show Tags

New post 07 Aug 2013, 21:51
1
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
_________________
When you want to succeed as bad as you want to breathe ...then you will be successfull....

GIVE VALUE TO OFFICIAL QUESTIONS...



GMAT RCs VOCABULARY LIST: http://gmatclub.com/forum/vocabulary-list-for-gmat-reading-comprehension-155228.html
learn AWA writing techniques while watching video : http://www.gmatprepnow.com/module/gmat-analytical-writing-assessment
: http://www.youtube.com/watch?v=APt9ITygGss
Manager
Manager
User avatar
Joined: 04 Oct 2013
Posts: 160
Concentration: Finance, Leadership
GMAT 1: 590 Q40 V30
GMAT 2: 730 Q49 V40
WE: Project Management (Entertainment and Sports)
Re: A product that represents a clear technological advance over competing  [#permalink]

Show Tags

New post 14 Jan 2014, 06:44
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.
_________________
learn the rules of the game, then play better than anyone else.
Magoosh GMAT Instructor
User avatar
G
Joined: 28 Dec 2011
Posts: 4472
Re: A product that represents a clear technological advance over competing  [#permalink]

Show Tags

New post 19 Sep 2016, 16:23
1
1
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 :-)
_________________
Mike McGarry
Magoosh Test Prep


Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)
Manager
Manager
User avatar
S
Status: Aiming MBA!!
Joined: 19 Aug 2017
Posts: 102
Location: India
GMAT 1: 620 Q49 V25
GPA: 3.75
WE: Web Development (Consulting)
Reviews Badge
Re: A product that represents a clear technological advance over competing  [#permalink]

Show Tags

New post 02 Dec 2017, 01:42
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.
Manager
Manager
avatar
S
Joined: 22 Sep 2018
Posts: 240
Re: A product that represents a clear technological advance over competing  [#permalink]

Show Tags

New post 19 Dec 2018, 15:58
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?

(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.




A) Correct, the first bold statement is the conclusion that the author is trying to push forward. the 2nd statement is explaining why you should support the author's position BECAUSE it is rejecting an alternative position
Manager
Manager
User avatar
B
Joined: 24 Jan 2017
Posts: 58
Location: Brazil
Concentration: Strategy, Entrepreneurship
GPA: 3.5
WE: Consulting (Consulting)
CAT Tests
Re: A product that represents a clear technological advance over competing  [#permalink]

Show Tags

New post 04 Jun 2019, 07:28
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?

(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

Similar question LINK1 & LINK2


Official Explanation - GMATPREP:

Answer Explanation

Reasoning What roles do the two boldfaced portions play in the passage? The passage’s first sentence just introduces the general topic of prices for new, technologically advanced products. In the second sentence, the first boldfaced portion explicitly recommends a strategy for maximizing overall profit from such products. The third sentence describes a popular alternative strategy. In the fourth sentence, the second boldfaced portion explicitly describes a drawback of that alternative strategy.

A Correct. The argument advocates the strategy recommended in the first boldfaced portion; the second boldfaced portion states a drawback of an alternative strategy and thus presents grounds for rejecting the position that the alternative strategy is effective.
B The second boldfaced portion is not an alternative position, but rather a reason for rejecting an alternative position.
C The second boldfaced portion presents a drawback not to the strategy presented in the first boldfaced portion, but rather to an alternative strategy.
D The second boldfaced portion does not present any reason to prefer a goal other than maximizing profits—it presents a drawback to a strategy for attaining that goal.
E The first boldfaced portion presents a strategy the argument recommends, and the second presents a reason why an alternative strategy might be ineffective.
GMAT Club Bot
Re: A product that represents a clear technological advance over competing   [#permalink] 04 Jun 2019, 07:28
Display posts from previous: Sort by

A product that represents a clear technological advance over competing

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne