It is currently 13 Dec 2017, 01:25

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

When a company refuses to allow other companies to produce

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Senior Manager
Senior Manager
User avatar
Joined: 04 Nov 2006
Posts: 257

Kudos [?]: 263 [0], given: 0

Location: California
When a company refuses to allow other companies to produce [#permalink]

Show Tags

New post 28 Dec 2006, 23:15
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

HideShow timer Statistics

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.

Kudos [?]: 263 [0], given: 0

VP
VP
User avatar
Joined: 25 Jun 2006
Posts: 1161

Kudos [?]: 204 [0], given: 0

 [#permalink]

Show Tags

New post 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.

Kudos [?]: 204 [0], given: 0

Manager
Manager
User avatar
Joined: 19 Aug 2006
Posts: 213

Kudos [?]: 76 [0], given: 0

 [#permalink]

Show Tags

New post 29 Dec 2006, 06:27
Its B

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

Kudos [?]: 76 [0], given: 0

Senior Manager
Senior Manager
avatar
Joined: 17 Aug 2005
Posts: 387

Kudos [?]: 148 [0], given: 0

Location: Boston, MA
 [#permalink]

Show Tags

New post 29 Dec 2006, 07:05
(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.

Kudos [?]: 148 [0], given: 0

Director
Director
avatar
Joined: 17 Jul 2006
Posts: 700

Kudos [?]: 14 [0], given: 0

 [#permalink]

Show Tags

New post 29 Dec 2006, 07:58
Yes it's B.

Kudos [?]: 14 [0], given: 0

Senior Manager
Senior Manager
User avatar
Joined: 24 Nov 2006
Posts: 349

Kudos [?]: 28 [0], given: 0

Re: CR_When a company refuses to allow ... [#permalink]

Show Tags

New post 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.

Kudos [?]: 28 [0], given: 0

VP
VP
User avatar
Joined: 07 Nov 2005
Posts: 1115

Kudos [?]: 54 [0], given: 1

Location: India
 [#permalink]

Show Tags

New post 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.
_________________

Trying hard to conquer Quant.

Kudos [?]: 54 [0], given: 1

Director
Director
User avatar
Affiliations: FRM Charter holder
Joined: 02 Dec 2006
Posts: 726

Kudos [?]: 103 [0], given: 4

Schools: Stanford, Chicago Booth, Babson College
 [#permalink]

Show Tags

New post 04 Jan 2007, 06:58
one more B guys.

Kudos [?]: 103 [0], given: 4

Manager
Manager
avatar
Joined: 20 Dec 2004
Posts: 177

Kudos [?]: 18 [0], given: 0

 [#permalink]

Show Tags

New post 04 Jan 2007, 08:44
B for me as well.
_________________

Regards

Subhen

Kudos [?]: 18 [0], given: 0

Senior Manager
Senior Manager
User avatar
Joined: 04 Nov 2006
Posts: 257

Kudos [?]: 263 [0], given: 0

Location: California
 [#permalink]

Show Tags

New post 04 Jan 2007, 13:29
OA is B..

Kudos [?]: 263 [0], given: 0

Intern
Intern
avatar
Joined: 30 Dec 2006
Posts: 5

Kudos [?]: [0], given: 0

Location: USA
[#permalink]

Show Tags

New post 04 Jan 2007, 18:53
CORRECT ANSWER IS B

Kudos [?]: [0], given: 0

B   [#permalink] 04 Jan 2007, 18:53
Display posts from previous: Sort by

When a company refuses to allow other companies to produce

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Moderators: GMATNinjaTwo, GMATNinja



GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.