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# The manufacturer of DTF claims its product reduces facial wrinkles

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Intern
Joined: 16 Aug 2014
Posts: 49
The manufacturer of DTF claims its product reduces facial wrinkles  [#permalink]

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15 Oct 2018, 03:34
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Difficulty:

15% (low)

Question Stats:

80% (01:39) correct 20% (02:05) wrong based on 126 sessions

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The manufacturer of DTF claims its product reduces facial wrinkles and wishes to sell it as a pharmaceutical. The Food and Drug Administration (FDA), however, has ordered lengthy and costly experiments to determine whether DTF truly reduces facial wrinkles. The manufacturer, a small cosmetics firm, lacks the resources to carry out the required research and will probably comply with less rigorous FDA regulations by labeling DTF a cosmetic.

Which of the following can be most reasonably inferred from the statements above?

A. Cosmetics are among the products not regulated by the FDA.
B. Only established pharmaceutical firms have the capital required to enter new products in the market.
C. The makers of DTF thought they would sell greater quantities of their product if it were a pharmaceutical rather than a cosmetic.
E. DTF has very little effect, if any, on facial wrinkles and would not have received FDA approval.

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Intern
Joined: 08 Oct 2018
Posts: 39
Location: Russian Federation
GMAT 1: 650 Q35 V44
GPA: 3.8
WE: Consulting (Education)
Re: The manufacturer of DTF claims its product reduces facial wrinkles  [#permalink]

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15 Oct 2018, 03:54
1
A. Cosmetics are among the products not regulated by the FDA.
>>> Wrong, see the text: "[...] will probably comply with less rigorous FDA regulations by labeling DTF a cosmetic" => therefore FDA regulates cosmetics as well.

B. Only established pharmaceutical firms have the capital required to enter new products in the market.
>>> Wrong. A newcomer might have tons of capital from investors, or if it is an established company in another industry that wants to diversify.

C. The makers of DTF thought they would sell greater quantities of their product if it were a pharmaceutical rather than a cosmetic.
>>> Wrong. The text doesn't mention any of the reasons for why DTF wanted to sell its product as a pharmaceutical.

>>> Correct. See the text: "DTF will probably comply with less rigorous FDA regulations by labeling DTF a cosmetic". From this we can infer that FDA regulations for pharmaceuticals are much stricter.

E. DTF has very little effect, if any, on facial wrinkles and would not have received FDA approval.
>>> Incorrect. DTF has abandoned its initial plans because of lack of capital, not because its product doesn't work.
Re: The manufacturer of DTF claims its product reduces facial wrinkles   [#permalink] 15 Oct 2018, 03:54
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