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# Prep. BF

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Joined: 04 May 2006
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06 Jun 2008, 02:44
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.

(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 a certain strategy; the second presents that strategy.

(D) the first is a consideration raised to explain the appeal of a certain strategy; the second is another consideration offered to support the stratregy

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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06 Jun 2008, 03:53
i will go with A..!!!
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06 Jun 2008, 17:10
sondenso 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 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 explain the appeal of a certain strategy; the second presents that strategy.

(D) the first is a consideration raised to explain the appeal of a certain strategy; the second is another consideration offered to support the stratregy

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.

Goal - max profit.
Strategy - drive towards the goal of max profits.

A, B, C - Out
BF2 is not the strategy itself.

D: BF1 does explain the appeal as the technological advances are quickly surpassed, so charging max price makes sense.
BF2: gives support to the overall strategy by rasing a consideration to fine tune the strategy to charge less than the max price possible but still maxing profits.

E. BF2 does not match.

D
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Joined: 04 May 2006
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Schools: CBS, Kellogg
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06 Jun 2008, 18:27
Sunny143 wrote:
sondenso 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 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 explain the appeal of a certain strategy; the second presents that strategy.

(D) the first is a consideration raised to explain the appeal of a certain strategy; the second is another consideration offered to support the stratregy

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.

Goal - max profit.
Strategy - drive towards the goal of max profits.

A, B, C - Out
BF2 is not the strategy itself.

D: BF1 does explain the appeal as the technological advances are quickly surpassed, so charging max price makes sense.
BF2: gives support to the overall strategy by rasing a consideration to fine tune the strategy to charge less than the max price possible but still maxing profits.

E. BF2 does not match.

D

Nice guy, Sunny! OA is D! your reasoning is smart!
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07 Jun 2008, 19:04
Thanks Sondenso....

Thanks also for all the interesting boldface questions ...keep it up buddy...
Re: Prep. BF   [#permalink] 07 Jun 2008, 19:04
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