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# critical reasoning

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Intern
Joined: 20 May 2017
Posts: 3

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25 Oct 2018, 06:35
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Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 7 sessions

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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.

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 explain the appeal of 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 that course of action that has been adopted in pursuit of that goal.

Math Expert
Joined: 02 Sep 2009
Posts: 50572

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25 Oct 2018, 06:42
daldas 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 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 explain the appeal of 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 that course of action that has been adopted in pursuit of that goal.

Discussed here: https://gmatclub.com/forum/a-product-th ... 80739.html

Please follow our rules of posting: https://gmatclub.com/forum/rules-to-pos ... 08733.html Critical reasoning question should be posted in respective forum: https://gmatclub.com/forum/critical-reasoning-cr-139/
_________________
Re: critical reasoning &nbs [#permalink] 25 Oct 2018, 06:42
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