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Mechmeera
Premise 1: Customers are aware that most of the faults that arise in their mobile phones are due to the excessive exposure of these phones to moisture or water.
This is an observation or a fact known.

Premise 2: Accordingly, engineers at Talkit Inc. have developed a water-resistant phone that can stay underwater for at least 30 minutes without any resultant damage to either its hardware or software.
Further discovery with additional info.

Premise 3: However, since the manufacturing cost of the phone is anywhere between 25-30% more than that of an ordinary phone, the phone will be very expensive and as such not be able to find enough customers.
This contains the conclusion in bold sentence.

In the argument given, the two boldfaced portions play which of the following roles?

A. The first is a reason provided to support a conclusion that the argument as a whole disputes; the second is an explanation that counters that conclusion.

The second is a conclusion and is not an explanation that counters the conclusion. -false
Argument does not dispute the first bold premise.-false


B. The first is an observation that the argument disfavors; the second is the position that the argument seeks to establish.

The second is a conclusion or position that argument seeks to establish-true
Argument does not disfavor the first bold premise.-false


C. The first is an observation that is not disputed by the argument; the second is a conclusion that is not supported by the first.

The second is a conclusion but it is not true that it is not supported by first-false
Argument does not dispute the first bold premise.-true


D. The first is an observation that is not disputed by the argument; the second is an explanation that the argument favors.

The second is a conclusion that the argument favors.-true.
Argument does not dispute the first bold premise.-true


E. The first is a reason provided to support a conclusion which the argument as a whole disputes; the second is that conclusion.

The second is a conclusion.-true
Argument does not dispute the first bold premise.-false

got it second time.
This is to help all those who preferred D over C or chose D itself.

1: Customers are aware that most of the faults that arise in their mobile phones are due to the excessive exposure of these phones to moisture or water.
This is an observation or a fact known.

2: However the phone will be very expensive and as such not be able to find enough customers.
This contains the conclusion in bold sentence.

C. The first is an observation that is not disputed by the argument; the second is a conclusion that is not supported by the first.

The second is a conclusion but it is not true that it is not supported by first-false..very much true as they are not directly related.
second statement is about the doubtful success of the phone due to its expense. whereas first express a different obs regarding normal problems to phone due to water or moisture.
Argument does not dispute the first bold premise. It introduces the argument which is further continued to the discovery.


D. The first is an observation that is not disputed by the argument; the second is an explanation that the argument favors.

First argument does not dispute the first bold premise.-true as explained above
The second is not an explanation but a conclusion(preferable) that the argument expresses.
The argument does not favor any explanation in the argument.


C is the correct answer.
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Hello from the GMAT Club VerbalBot!

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