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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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Official Guide for GMAT Verbal Review, 2nd Edition

Practice Question
Question No.: 74
Page: 146

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 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 help explain the popularity of a certain strategy; the second presents that strategy.
(D) The first is an assumption, rejected by the argument, that has been used to justify a course of action; the second presents that course of action.
(E) The first is a consideration that has been used to justify adopting a certain strategy; the second presents the intended outcome of that strategy.

Similar Question : LINK1 & LINK2

[Reveal] Spoiler:
There are many versions of this question on the forum but I could not find this exact one.

My doubt here
A. I chose this one (A) as I thought the first Bold face statement is the one reason that is used by the companies to charge the maximum price that is highlighted in the second bold face statement.

Can you please let me know where I am going wrong.
[Reveal] Spoiler: OA

Last edited by Narenn on 17 Oct 2013, 04:11, edited 2 times in total.

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

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Hi Pavan.

The signal word "because", so the first bold part is the REASON to support the second bold part - a strategy (the maximum possible price).

You understand option A like: The first is a reason used to support that a certain strategy. <== It's correct. But It is NOT what option A says:

Option A says: The first is a reason used to show that a certain strategy is counterproductive. ==> It means "the first used to weaken the second part". But the first part does not oppose the second bold part. In fact, the first supports the second. Hence, A is wrong.

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

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New post 14 Aug 2013, 10:09
First part is a consideration that we know is truth. So D is out.

Answer choice(A) The first is a consideration raised to argue that a certain strategy is counterproductive; the second presents that strategy.

First of all the first part doesn't argue over anything. It's just a statement which is truth. First part NEVER says that second part is counterproductive. On the contrary, second is the outcome of the first part.
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Re: A product that represents a clear technological advance over competing [#permalink]

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pavan2185 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 wantto make large profits while they still
can, many companies charge the maximum
possible price for such a product
. Butlarge profits
on the new productwill give competitors a strong
incentive to quickly match the new product's
capabilities. Consequently, the strategy to maximize
overall profit from a new productis to charge less than
the greatestpossible price.
In the argument above, the two portions in boldface
play which of the following roles?
(A) The first is a consideration raised to argue that a
certain strategy is counterproductive; the
second presents that strategy.
(8) The first is a consi deration raised to support the
strategy that the argument recommends; the
second presents that strategy.
(C) The first is a consideration raised to help explain
the popularity of a certain strategy; the second
presents that strategy.
(D) The first is an assumption, rejected bythe
argument, that has been used to justify a course
of action; the second presents that course of
action.
(E) The first is a consideration that has been used to
justify adopting a certain strategy; the second
presents the intended outcome of that strategy.

There are many versions of this question on the forum but I could not find this exact one.
My doubt here

A. I chose this one (A) as I thought the first Bold face statement is the one reason that is used by the companies to charge the maximum price that is highlighted in the second bold face statement.

Can you please let me know where I am going wrong.


Hi Pavan,

pqhai has very aptly responded to your question. I just want to add one thing.

To do any question wrong on GMAT, you must commit two errors:
1. Accept an incorrect choice for wrong reason - the way you did in option A.
2. Reject a correct choice for wrong reasons - the way you did in option C.

Now, my question to you is that have you learnt from both the errors in this question? Besides learning why you chose incorrect option A, have you also learnt why you incorrectly rejected option C? If the answer is yes, then good job. Otherwise, think why did you reject option C and how would you ensure that you don't do similar errors in future questions.

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

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New post 17 Mar 2014, 01:25
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. Butlarge 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.


Are these both question are different?? M confused..arguments is same..bt boldfaces and choices are change.. and ans are different as well
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Re: A product that represents a clear technological advance over competing [#permalink]

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New post 08 Dec 2014, 13:03
Hello, I am new to this forum.

Could you please review this question? The OA seems incorrect, as the argument doesn't mention anything about 'popularity' of a strategy. B seems better.

Thanks,

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

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New post 01 Mar 2015, 01:37
Picked D (between D and C).

Can somebody tell me why D is here wrong ?
(D) The first is an assumption, rejected by the argument, that has been used to justify a course of action; the second presents that course of action. --> is it because of the wording Rejected by the argument ? Actually the first BF is not rejected by the argument, may be the second BF.
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Re: 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. 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.

To simplify the question:

In this question, the strategy is to charge the maximum price possible. Why should they charge the maximum price? Because technological advances tend to be quickly surpassed. However, what does this strategy do? It causes the competitors to jump in as fast as possible. So, the author's opinion is: the strategy should be to charge less than the greatest possible price.

Now, with this understanding:

(A) The first is a consideration raised to argue that a certain strategy is counterproductive; the second presents that strategy. - The 1st part is incorrect as the 1st part gives are reason for the strategy and does not state that it is counterproductive; 2nd part is correct
(8) The first is a consideration raised to support the strategy that the argument recommends; the second presents that strategy. - Again, the 1st part is incorrect as the 1st statement supports the strategy and not what the argument recommends. The argument recommends a different strategy
(C) The first is a consideration raised to help explain the popularity of a certain strategy; the second presents that strategy. - This is correct since the 1st part gives a reason for the strategy being used (popularity)
(D) The first is an assumption, rejected by the argument, that has been used to justify a course of action; the second presents that course of action. - The word 'assumption' is incorrect. This is not an assumption. It is clearly stated.
(E) The first is a consideration that has been used to justify adopting a certain strategy; the second presents the intended outcome of that strategy. - The part is incorrect since the 2nd statement is not the outcome but the strategy itself.

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 05 Feb 2016, 03:34
The first is a belief (consideration)
The second is a strategy
Choice B is incorrect since the argument recommends that the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.
Choice C is correct.

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

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New post 31 Jul 2016, 08:30
BrainLab wrote:
Picked D (between D and C).

Can somebody tell me why D is here wrong ?
(D) The first is an assumption, rejected by the argument, that has been used to justify a course of action; the second presents that course of action. --> is it because of the wording Rejected by the argument ? Actually the first BF is not rejected by the argument, may be the second BF.




Assumption is an implicit premise, which is not stated in the argument! You can simply reject any answer choice saying a certain BF is an assumption!

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

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New post 10 Nov 2016, 15:55
Can someone please explain why (C) is the correct answer?

I don't understand where "popularity" is explained in the argument.

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

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manhasnoname wrote:
Can someone please explain why (C) is the correct answer?

I don't understand where "popularity" is explained in the argument.


Hi! There,

Lemme try explaining you with my though process. Let's understand the argument while we are reading it.

A product that represents a clear technological advance over competing products can generally command a high price (Looks like a general principle that is present in the market). Because technological advances tend to be quickly surpassed (It is commenting on the general principle. We can think that there is always a competition among many players for producing high-tech products) and companies want to make large profits (As mentioned in the first sentence. Advanced technology= Higher price command) while they still can, many companies charge the maximum possible price for such a product (Companies charge maximum money in the initial phases when none of the player has introduced advanced product) (Basically, it is company's strategy to charge more till the time no new competitor comes into the market) . But large profits on the new product will give competitors a strong incentive to quickly match the new product's capabilities (It says that high profits drive more companies to manufacture more high-tech product. Obviously, what is hot in the market raises competition). Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price (This is the suggested strategy by the author that if a company has same thing to offer on less price than what others are offering, consumers will buy that more, increasing the profits).

Notice that the strategy suggested by the author is different from the strategy currently practiced.

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

(A) The first is a consideration raised to argue that a certain strategy is counterproductive (Nowhere in the argument it is mentioned that any strategy is counterproductive. Only alternate strategy is introduced by the author); the second presents that strategy.
(8) The first is a consideration raised to support the strategy that the argument recommends ; the second presents that strategy ('that' here refers to the recommended strategy, and 2nd BF is certainly not the recommended strategy by the author).
(C) The first is a consideration raised to help explain the popularity of a certain strategy ('Popularity' here refers to 'Reason'. The reason that companies charge more in the initial phase is that they probably have small window to do so, until other competitors come in the picture); the second presents that strategy (Yes, second is that strategy- charge high).
(D) The first is an assumption (Not an assumption. It is 'Actual practice'), rejected by the argument, that has been used to justify a course of action; the second presents that course of action.
(E) The first is a consideration that has been used to justify adopting a certain strategy; the second presents the intended outcome (It is not intended outcome. It is the actual outcome) of that strategy.


Hope it is helpful.

Kudos won't hurt for this explanation :)
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Re: A product that represents a clear technological advance over competing [#permalink]

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New post 10 Nov 2016, 17:06
Divyadisha wrote:
manhasnoname wrote:
Can someone please explain why (C) is the correct answer?

I don't understand where "popularity" is explained in the argument.


Hi! There,

Lemme try explaining you with my though process. Let's understand the argument while we are reading it.

A product that represents a clear technological advance over competing products can generally command a high price (Looks like a general principle that is present in the market). Because technological advances tend to be quickly surpassed (It is commenting on the general principle. We can think that there is always a competition among many players for producing high-tech products) and companies want to make large profits (As mentioned in the first sentence. Advanced technology= Higher price command) while they still can, many companies charge the maximum possible price for such a product (Companies charge maximum money in the initial phases when none of the player has introduced advanced product) (Basically, it is company's strategy to charge more till the time no new competitor comes into the market) . But large profits on the new product will give competitors a strong incentive to quickly match the new product's capabilities (It says that high profits drive more companies to manufacture more high-tech product. Obviously, what is hot in the market raises competition). Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price (This is the suggested strategy by the author that if a company has same thing to offer on less price than what others are offering, consumers will buy that more, increasing the profits).

Notice that the strategy suggested by the author is different from the strategy currently practiced.

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

(A) The first is a consideration raised to argue that a certain strategy is counterproductive (Nowhere in the argument it is mentioned that any strategy is counterproductive. Only alternate strategy is introduced by the author); the second presents that strategy.
(8) The first is a consideration raised to support the strategy that the argument recommends ; the second presents that strategy ('that' here refers to the recommended strategy, and 2nd BF is certainly not the recommended strategy by the author).
(C) The first is a consideration raised to help explain the popularity of a certain strategy ('Popularity' here refers to 'Reason'. The reason that companies charge more in the initial phase is that they probably have small window to do so, until other competitors come in the picture); the second presents that strategy (Yes, second is that strategy- charge high).
(D) The first is an assumption (Not an assumption. It is 'Actual practice'), rejected by the argument, that has been used to justify a course of action; the second presents that course of action.
(E) The first is a consideration that has been used to justify adopting a certain strategy; the second presents the intended outcome (It is not intended outcome. It is the actual outcome) of that strategy.


Hope it is helpful.

Kudos won't hurt for this explanation :)



Again, how "popularity" refers to "reason"? In which sense???

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

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New post 11 Nov 2016, 11:59
manhasnoname wrote:


Again, how "popularity" refers to "reason"? In which sense???


Thanks for pointing it out.

I actually wanted to say that 'Popularity' refers to the 'Reason of current practice' i.e. why companies are charging more after launching a product?. Answer is that because they are getting more money in the earlier phases. If you read the stimulus again, you will realize that this is the practice companies are following to get some outcome. And, if companies are following this strategy, that means that the strategy is popular among them.

Second BF is certainly the strategy.

I hope it is clear now.
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Re: A product that represents a clear technological advance over competing [#permalink]

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New post 10 Mar 2017, 09:28
BrainLab wrote:
Picked D (between D and C).

Can somebody tell me why D is here wrong ?
(D) The first is an assumption, rejected by the argument, that has been used to justify a course of action; the second presents that course of action. --> is it because of the wording Rejected by the argument ? Actually the first BF is not rejected by the argument, may be the second BF.


The point is that the first is not an assumption, but a fact. This fact is actually never rejected by the argument and therefore (D) is wrong. In fact, a fact can never be rejected, because it is given as something true.

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

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New post 23 Aug 2017, 10:48
C is correct being the only choice that is consistent with the analysis of the reasoning presented above.
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Re: A product that represents a clear technological advance over competing [#permalink]

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New post 16 Oct 2017, 02:43
can someone explain what is the conclusion here?

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Re: A product that represents a clear technological advance over competing   [#permalink] 16 Oct 2017, 02:43
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