A product that represents a clear technological advance over competing

Question

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 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 a course of action that has been adopted in pursuit of that goal.

HaileyCusimano · Accepted Answer

Hi  ballest127  &  Akshi123  - Happy to chime in and help!

For boldface reasoning questions, we'll want to start by thinking about the boldface portions in terms of three considerations:

1. Whether the bold portions are presented as fact (evidence/premise) or opinion (conclusion)
2. Whether the bold portions align with or contrast one another (are they making the same point, or different points?)
3. Whether the bold portions align with or contrast the author's argument (Here - it's important to identify the argument structure and conclusion, regardless of whether it falls under one of the bold faced portions - keep in mind, the non-boldened portions are equally important to understanding the argument as a whole!)

In this case, the distinction between  (C)  and  (E)  rests on the latter two points. In this argument, the first boldface portion presents the situation for why the author posits that "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price" - the author and argument's overall conclusion. The second, is that strategy/conclusion. So, both points align with one-another, and align with the author. Thus,  (C)  makes a lot of sense!

We'll want to keep in mind that we're looking for why the author has chosen to include the information first and foremost. So, function of the detail should be what we look for in the boldface portions. In this case, "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" has been included to explain why "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price."

In answer choice  (E)  - the statements align with one-another, but run counter to the author's conclusion. In this case, the final boldface portion is the author's conclusion! So, the first certainly cannot be a "consideration that has been used to justify pursuing a goal that the argument rejects," nor the second "a course of action that has been adopted in pursuit of that goal." The goal mentioned in the argument (maximizing overall profit) is not rejected by the author's argument/conclusion. Instead, the author presents a strategy for how to do so in the second boldface portion, and uses the first to present why this strategy is appealing/sensible.

This is actually a very common trap set up in CR boldface arguments - since the argument introduces a point countered by the author. Because of this, test-takers will gravitate toward answer choices with conflicting or contrasting language. But keep in mind, the boldface portions are making the same point, and it's the point the author is making - so  (C)  fits perfectly!

( This question  poses a similar structure - in case you'd like to reinforce the point with another example!)

So, as much as possible, if you can try to whittle away the content and focus on the structure/function of the argument, you'll be able to differentiate between correct and convincing wrong answers, and move through questions like this one more efficiently and effectively!

I hope this clarifies!

Bunuel · Answer

Similar questions: https://gmatclub.com/forum/a-product-th ... 80739.html (GMATPrep) https://gmatclub.com/forum/a-product-th ... 57502.html (GMATPrep) https://gmatclub.com/forum/a-product-th ... 57880.html (OG)

MS1014 · Answer

Between C and E,
The catch in the last option is "...a goal that the argument rejects" and now think, does the argument reject the goal of making profits or does it state a better way to achieve the goal? clearly it's the latter.

adkikani · Answer

VeritasKarishma   MentorTutoring

Can you elaborate option (E) and (C) for me?

Main conclusion: the strategy to maximize overall profit from a new product is to charge less than the greatest possible price. (marked by keyword: consequently)

My understanding of passage:
Technological advance (TA) in products: Charge more to customer to get profits asap.
But competitors find a GREATER incentive seeing larger prices, hence they too COPY TA and in turn destroy the earlier 
company's plan to make huge profits earlier.

BF1 Is a consideration.
Goal: To make profits as early as possible
Does author rejects the goal: *Yes, He says since competitors shall match TA for the products, the firms shall not be able to execute their plan.
BF2: I would purely reject this choice since BF2 is a conclusion / opinion. It can NEVER be a COURSE OF ACTION as this option suggests.
*Other subtle difference is author is against strategy of firms, not the goal.

I discarded C because:
 
Strategy 1 by firms: Charge as much $ as possible so as to get maximum profit in minimum time.
Stategy 2 by author: DO NOT CHARGE $$$, since then competitors will be aware of higher prices, follow TA and then the plan (of earning maximum profit in shortest period) of firms shall fail.

The main conclusion

is based on premise:
 
NOT strategy 1 as suggested by firms in BF1.

Let me know if my reasoning is correct.

AndrewN · Answer

Hello again,  adkikani . I find your thoughts on the question to be spot on, other than the part, of course, about rejecting choice (C). To be clear, I understand how you could interpret that option as saying that the strategy  in bold , the first boldface portion that is, was appealing when the author goes against that strategy. But by more closely examining the regular text surrounding the two boldface lines, you come to see that  the appeal of a certain strategy  refers instead to the overall strategy espoused by the author, expressed clearly at the end of the passage in the second boldface portion. Option (C), then, becomes difficult to argue against. And you are right about (E): the argument does  not  reject the  goal  of making money. The author only considers the optimal way to go about achieving that aim. Remember, every word in an answer choice has to count.

I hope that helps. If not, let me know, and I would be happy to carry on our dialogue.

- Andrew

KarishmaB · Answer

I would request someone to post a screenshot of the actual GMAT Prep question. Here, the first boldface statement includes the strategy companies follow. (C) will be correct if our boldface includes only 
 Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can,

This is the appeal of both strategies - one that companies follow and the other that the author recommends.

"But large profits on the new product will give competitors a strong incentive to quickly match the new product's capabilities." is the appeal of the author's strategy only.

So even with the correct boldface statements, I would just make do with option (C) since nothing else is better.

DishaAgarwal12 · Answer

KarishmaB

but isn't the first bold-faced statement talking about charging the maximum possible price for a product and the second one talking about the consequent strategy which is cahrging less than max. Option C says "that' which is not correct as they're not talking essentially about the same strategy.

KarishmaB · Answer

As I said in my comment above, the question is unclear till the time it is not explained what exactly is in boldface in the first statement.

"  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.  "

should not be in boldface in the official question. Only

Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can,

should be in boldface. We don't have the official screenshot, so I am assuming that only the first part is in boldface. It explains the appeal of the author's strategy too.

A product that represents a clear technological advance over competing

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Critical Reasoning (CR) Questions

A product that represents a clear technological advance over competing

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards