Some business analysts assert that a new product will retain a sizable

Question

Some business analysts assert that a new product will retain a sizable market share after its first year of production as long as customer loyalty is maintained; that customer loyalty is maintained as long as the price of the product can be kept low; and, that the price of the product can be kept low as long as the product retains a sizable market share.

If the business analysts' assertions are correct, which of the following can be logically derived from them?

A. If the price of the product cannot be kept low, the product will no longer remain on the market.
B. If the product has a sizable market share after its first year of production, it will retain the market share afterward.
C. If the industry as a whole experiences a decrease in sales, the sales of the product will not be adversely affected.
D. The product will retain its market share after its first year of production.
E. The product's manufacturers will not be influenced by the success of their competitors.

roh1714 · Answer

Some business analysts assert that a new product will retain a sizable market share after its first year of production as long as customer loyalty is maintained; that customer loyalty is maintained as long as the price of the product can be kept low; and, that the price of the product can be kept low as long as the product retains a sizable market share.

If the business analysts' assertions are correct, which of the following can be logically derived from them?

A. If the price of the product cannot be kept low, the product will no longer remain on the market- 
for the price to kept low, product needs to have a market share, and price correlates to consumer loyalty. "no longer remain" those are very strong words. It may or may not be the case.

B. If the product has a sizable market share after its first year of production, it will retain the market share afterward-  CORRECT!  it follows the cycle in the question

C. If the industry as a whole experiences a decrease in sales, the sales of the product will not be adversely affected- no support in the passage 
D. The product will retain its market share after its first year of production- irrelevant
E. The product's manufacturers will not be influenced by the success of their competitors- irrelevant

ANS- B

SafSin28 · Answer

Argument: a sizable market share ---->Low price---->Cust loyalty-----> a sizable market share.

A) no low---> no market. (It'd be correct if it said 'not a sizeable market' instead of market.)
B)  a  sizeable market---->  the  sizeable market (I actually thought it keeps the same market share. That's why I hesitated on this)
C) Decrease in sales as a whole----> not effect for the product. (Whole vs part trap here is! OUT)
D) Produced---->market share (I actually thougt this might be correct one as it says product gains a market share after being produced)
E) Competitors---> no effect on producers. ('Competitors' is a new information here. So it can't be inferred)

GMATNinja  could you explain this please?

Grav_zer0 · Answer

Will retain the market share. I was hoping it to be can, will is acting as an assurance but here in the argument :- that the price of the product  can  be kept low as long as the product retains a sizable market share.

ManifestDreamMBA · Answer

I believe " sizable  market share" is the key

lavjit99 · Answer

I thought the same. I was pretty certain "will" was the reason for safely eliminating this answer choice. How do we know there are no other factor in play? Not sure, maybe I am missing something.

iamjatinagrawal · Answer

A. If the price of the product cannot be kept low, the product will no longer remain on the market.  - Argument mentions about retaining a sizeable market share, not talking about whether the product will just vanish from the market if the price cannot be kept low.  ELIMINATE

C. If the industry as a whole experiences a decrease in sales, the sales of the product will not be adversely affected.  - Cannot infer about the effect of decrease in sales in industry on the sales of the product as there is nothing given about the sales of the industry as a whole.  ELIMINATE

D. The product will retain its market share after its first year of production.  - Prediction and this is an inference questions, almost always wrong unless given verbatim in the passage. Hence,  ELIMINATE

E. The product's manufacturers will not be influenced by the success of their competitors.  - Again, prediction.  ELIMINATE  unless its given verbatim or can directly infer from the given information in the argument

B. If the product has a sizable market share after its first year of production, it will retain the market share afterward. -  We are left with this option, which seems to be the correct answer after all.

Retain Sizeable Market -> as long as the customer loyalty is maintained.
Customer loyalty is maintained->  as long as the price of the product can be kept low. 
 As long as the price of the product can be kept low -> as long as the product retains a sizable market share.

So, from this we can infer what  Option (B)  is stating. Because if the product is able to retain sizeable market after first year in production then the cycle will continue. Hence,  Option (B)  is the correct answer choice.

Some business analysts assert that a new product will retain a sizable

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Some business analysts assert that a new product will retain a sizable

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