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Originally posted by bhatiagp on 03 Mar 2008, 07:39.
Last edited by bhatiagp on 03 Mar 2008, 22:24, edited 1 time in total.
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Products with technological superiority over competing products generally comand a higher price. As technological advances quickly get undermined, firms want to make higher profits while they still can , they charge maximum profit for such a product . However large profits on the new product will give competitors a strong incentive to quickly enter the products competition
Therefore the strategy to maximise overall profit from new products is to charge less than 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 is that strategy.
B. The first is consideration raised to support the strategy that the argument reccomends, the second presents that strategy.
C. The first is a strategy raised to explain the appeal of a certain strategy , the second presents that strategy.
D. The first is an exemption 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.
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I will go with E. As author starts with first consideration but later refutes it saying that to maximise profit prices should be kept low. However secon bold option is consideration followed by competitors.
Originally posted by bhatiagp on 02 May 2008, 13:39.
Last edited by bhatiagp on 24 Jun 2008, 07:37, edited 1 time in total.
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THE SOURCE OF THIS QUESTION AND ANSWER IS my friends notes. I also didnt get the answer correct to this . So wanted to get your feedback. Looks like none of us could explain why C is mentioned as correct. So the OA could be a prinitng error.
Products with technological superiority over competing products generally comand a higher price. As technological advances quickly get undermined, firms want to make higher profits while they still can , they charge maximum profit for such a product . However large profits on the new product will give competitors a strong incentive to quickly enter the products competition
Therefore the strategy to maximise overall profit from new products is to charge less than 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 is that strategy.
B. The first is consideration raised to support the strategy that the argument reccomends, the second presents that strategy.
C. The first is a strategy raised to explain the appeal of a certain strategy , the second presents that strategy.
D. The first is an exemption 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.
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I'll go with C.
The first strategy is the higher price and the second is strategy of entering the competition itself.
THE SOURCE OF THIS QUESTION AND ANSWER IS ONE OF THE PREV VIP Questions from Jan 08 ON Score top. I also didnt get the answer correct to this . So wanted to get your feedback. Looks like none of us could explain why C is mentioned as correct. So the OA could be a prinitng error.
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I'm not sure what scoretop is, but I think I have seen this question in the OG or in Kaplan 800. At least it looks familiar, but I don't remember anything about technology, but rather some other topic involving market competition.
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