A product that represents a clear technological advance over competing

Question

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.

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 help explain the appeal 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 pursuing a goal that the argument rejects; the second presents a course of action that has been adopted in pursuit of that goal.

Note : This question is similar to but different from all of the following—

GMAT Prep #1 —Different boldface and answer choices
 GMAT Prep #2 —Different passage and answer choices
 OG question —Different boldface and answer choice (E)

GMAT.la

AndrewN · Accepted Answer

Hello, everyone. I see a few comments already, and I thought I would take a moment to disqualify a few answer choices. I will pick off the easier ones (to my eye) first.

It is clear that the second  boldface  is the strategy that the argument endorses, so it would not make sense to say that that very strategy is  counterproductive . This ought to be an easy elimination.

There is no  assumption  to be found in the first  boldface . Consider the line on the whole:

The  because  clause provides an observation, not an assumption—notice the verb  tend to . The main clause informs us of a logical consequence of the first part: some companies pursue a certain strategy  to make large profits while they still can . This answer choice should be another easy elimination.

You have to be really careful here. The  goal  in question is  to make large profits  (first boldface) or  to maximize overall profit  (second boldface). The goal itself is consistent throughout the passage. It is only the manner in which that goal is pursued that the passage creates a dichotomy. Thus, this answer choice does not hold up to scrutiny.

Now, the other two are close, for reasons I will explain below. How about we look at them together?
 
There is no debate whether  the first is a consideration , nor whether  the second presents that strategy . It is really a matter of interpreting just what  that  refers to in the second part. Both answer choices take a  positive  spin on the first  boldface : take your pick between  support  and  help . There is a difference, however, between the references to  the strategy  in (B) and   a certain  strategy  in (C). In the former, we  must  interpret  the strategy  as the one given at the end of the passage. It seems a bit strange, though, in light of the fact that the  boldface  covers the opposing strategy— many companies charge the maximum possible price for such a product . That is,  on its own , the first statement of the answer choice seems to refer to the wrong strategy. I would mark this as a doubt.

Meanwhile, answer choice (C) emphasizes  the appeal of  a certain  strategy , and  on its own , that strategy could be interpreted either as the one at the end of the first boldface  or  the one at the end of the passage, as in,  Most companies do something in an effort to maximize profits, but, with this in mind, here is a better way to do so . Of course, the latter part of the answer choice steers us into the second interpretation—again,  that strategy —but if the first  boldface  were thought of more as a  consideration  that spanned the entire passage, then  the appeal of a certain strategy  (i.e. not the first one in bold), would make sense.

Either way we look at it, answer choices (B) and (C) require a more holistic view to justify, but the phrasing of (C) is less debatable to me—more cautious and vague language is not as easy to challenge as specific and narrow language. In short, if my back were against the wall, I would choose (C) over (B). The rest of the options would not be in my mind, for reasons explained above.

I would be happy to listen to opposing viewpoints from others, both non-Experts and Experts alike. The goal is to enhance the community and help one another ace this _____ test.

- Andrew

lasttime · Answer

To me, option C makes sense if  "many companies charge the maximum possible price for such a product"  was not in bold.
I marked E. Maybe I am missing something.

christiannn · Answer

AndrewN :

The phrasing of option C is very odd though - isn't "that strategy" in 2nd BF the same strategy as "a certain strategy" in the 1st BF since it used "that"?

AndrewN · Answer

Yes,  christiannn , but as I explain in my post above,  a  certain  strategy  leaves room for interpretation as to just which strategy the subsequent  that  will apply to. Consider:

1) The first boldface is meant to explain the appeal of an  opposing  strategy. Then,  that strategy  in the latter half does not make sense, since the second boldface clearly goes against the first.

2) The first boldface is meant to explain the appeal of  the overall  strategy recommended by the passage:  to maximize overall profit . Then,  that strategy  is merely an extension of this idea from the first boldface.

Granted, this is a subtlety I would not expect to encounter in even the most challenging questions nine times out of ten, but there must be a correct answer, and for reasons I outline above, I find (C) the best of the lot. There is a possibility, of course, that this old question is a corrupted form of its counterparts I drew attention to in the original post. If it does not make sense or seems off to you, study the other questions instead. It is best to build your confidence by tackling a variety of high-quality official questions, not worrying about a few that might be beyond the scope of the test.

Good luck with your studies.

- Andrew

Usernamevisible · Answer

In option (C), the wording says that the first boldface explains the appeal of that strategy, and the second presents that strategy. My confusion is with the reference of that strategy.

The first boldface clearly explains why companies adopt the maximum-price strategy. However, the second boldface presents a different strategy i.e. charging less than the maximum price.

So it feels like option (C) is incorrectly implying that both boldfaces are referring to the same strategy. Instead, it seems more accurate to describe the second boldface as presenting an alternative strategy to achieve the same objective (maximizing profit), which is closer to what option (E) suggests

Could you clarify how  that strategy  in option (C) is being interpreted, and why it is still considered correct despite the apparent shift in strategy between the two boldface portions?

Usernamevisible · Answer

Key learning for BF 1 option E -

The goal is the same throughout; only the method changes.

Translate that:

Early: “make large profits”
Later: “maximize overall profit”

These are essentially the same goal.

Why this eliminates option (E):

Option (E) states that the first boldface justifies pursuing a goal that the argument rejects.

However, the argument does not reject the goal. It still aims for profit.

What the argument actually rejects is the method of pursuing that goal, specifically the strategy of charging the maximum possible price.

MartyMurray · Answer

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.

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

First break down the passage.

A product that represents a clear technological advance over competing products can generally command a high price.  - background information

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.   - background information

But large profits on the new product will give competitors a strong incentive to quickly match the new product's capabilities.  - supporting premise

Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.   - main conclusion

Now, go to the answer choices and compare.

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

The first does not indicate that any strategy is counterproductive. Rather, the first simply presents a strategy. So, the first part of this choice is incorrect.

The second part of this choice is partially correct since the second does present a strategy. However, since the second boldfaced portion presents a strategy that the author advocates rather than one that the author considers "counterproductive," the second part of this choice is also incorrect.

Eliminate.

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

This choice is tricky because we can easily get the impression that the first boldfaced portion provides a reason to use the strategy that the author recommends.

At the same time, this choice is incorrect because the first boldfaced portion does not support use of the "charge less than the greatest possible price" strategy. Rather, the first simply presents a different strategy, the "charge the maximum possible price" strategy, without indicating anything about the effectiveness of that strategy or the recommended strategy.

The second part of this choice is correct because the second boldfaced portion does present the strategy that the author recommends.

All the same, this choice is incorrect because the first part is incorrect.

Eliminate.

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

This choice is tricky. Having seen that the first boldfaced portion basically just presents the "charge the maximum possible price" strategy, we can see that the first boldfaced portion does not exactly support use of the strategy the author recommends. So, we may eliminate this choice because the first boldfaced portion does not itself "explain the appeal" of the strategy the author recommends.

At the same time, reading the first part of this choice carefully, we can see that it's actually correct because the author does use the first boldfaced portion as part of an explanation of the appeal of the "charge less than the greatest possible price" strategy." In other words, the first boldfaced portion presents background information that plays a role in the author's explanation of the appeal of the strategy the author recommends.

Then, the second part of this choice is also correct since the second boldfaced portion does present the strategy that the author explains the appeal of.

Keep.

(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 first part of this choice is incorrect because the first boldfaced portion is not an assumption. It is a statement of fact about a strategy that companies use.

The second part of this choice is also incorrect. After all, while the second boldface portion does present a course of action, that course of action is not justified by the first boldfaced portion.

Eliminate.

(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.

The first part of this choice is incorrect for multiple reasons. One is that the first boldfaced portion is not used to justify a "goal." Rather the first boldfaced portion presents a strategy for achieving the goal of making large profits. The other reason is that the argument does not reject any goal. Rather, the argument rejects a strategy, the "charge the maximum possible price" strategy.

The second part of this choice is partially correct because the second does present a course of action. However, since the passage does not indicate that the course of action presented by the second boldfaced portion has been adopted "in pursuit" of a rejected goal or even "has been adopted" at all, the second part of this choice is clearly incorrect.

Eliminate.

Correct answer:   C

A product that represents a clear technological advance over competing

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A product that represents a clear technological advance over competing

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