When a company refuses to allow other companies to produce : GMAT Critical Reasoning (CR)
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# When a company refuses to allow other companies to produce

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Senior Manager
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When a company refuses to allow other companies to produce [#permalink]

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28 Dec 2006, 23:15
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When a company refuses to allow other companies to produce patented technology, the consumer invariably loses. The company that holds the patent can charge exorbitant prices because there is no direct competition. When the patents expire, other companies are free to manufacture the technology and prices fall. Companies should therefore allow other manufacturers to license patented technology.

The argument above presupposes which of the following?

1. Companies cannot find legal ways to produce technology similar to patented technology.

2. Companies have an obligation to act in the best interest of the consumer.

3. Too many patents are granted to companies that are unwilling to share them.

4. The consumer can tell the difference between patented technology and inferior imitations.

5 .Consumers care more about price than about quality.
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29 Dec 2006, 00:00
2.

2 is needed because the reason that companies need to share the patent is not mentioned. it is asking for a reason that is good for the consumer.
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29 Dec 2006, 06:27
Its B

2. Companies have an obligation to act in the best interest of the consumer.
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29 Dec 2006, 07:05
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Patents cause consumers to lose. Companies should allow other companies to use the patent technology. What is the initial assumption? That companies should care.
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29 Dec 2006, 07:58
Yes it's B.
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Re: CR_When a company refuses to allow ... [#permalink]

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31 Dec 2006, 16:12
2 is the most direct assumption. The missing premise is related to why should companies share the patents.

mm007 wrote:
When a company refuses to allow other companies to produce patented technology, the consumer invariably loses. The company that holds the patent can charge exorbitant prices because there is no direct competition. When the patents expire, other companies are free to manufacture the technology and prices fall. Companies should therefore allow other manufacturers to license patented technology.

The argument above presupposes which of the following?

1. Companies cannot find legal ways to produce technology similar to patented technology.

2. Companies have an obligation to act in the best interest of the consumer.

3. Too many patents are granted to companies that are unwilling to share them.

4. The consumer can tell the difference between patented technology and inferior imitations.

5 .Consumers care more about price than about quality.
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04 Jan 2007, 01:05
buckkitty wrote:
(2)
Patents cause consumers to lose. Companies should allow other companies to use the patent technology. What is the initial assumption? That companies should care.

Exact reason for picking B.
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04 Jan 2007, 06:58
one more B guys.
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04 Jan 2007, 08:44
B for me as well.
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Subhen

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04 Jan 2007, 13:29
OA is B..
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04 Jan 2007, 18:53
CORRECT ANSWER IS B
B   [#permalink] 04 Jan 2007, 18:53
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# When a company refuses to allow other companies to produce

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