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# When a company refuses to allow other companies to produce

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Senior Manager
Joined: 04 Nov 2006
Posts: 257

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

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29 Dec 2006, 00:15
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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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VP
Joined: 25 Jun 2006
Posts: 1161

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

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29 Dec 2006, 01:00
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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Manager
Joined: 19 Aug 2006
Posts: 213

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29 Dec 2006, 07:27
Its B

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

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Senior Manager
Joined: 17 Aug 2005
Posts: 387

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Location: Boston, MA

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29 Dec 2006, 08:05
(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.

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Director
Joined: 17 Jul 2006
Posts: 700

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29 Dec 2006, 08:58
Yes it's B.

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Senior Manager
Joined: 24 Nov 2006
Posts: 349

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

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31 Dec 2006, 17:12
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
Joined: 07 Nov 2005
Posts: 1115

Kudos [?]: 53 [0], given: 1

Location: India

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04 Jan 2007, 02:05
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.

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

Kudos [?]: 102 [0], given: 4

Schools: Stanford, Chicago Booth, Babson College

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04 Jan 2007, 07:58
one more B guys.

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Manager
Joined: 20 Dec 2004
Posts: 177

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04 Jan 2007, 09:44
B for me as well.
_________________

Regards

Subhen

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Senior Manager
Joined: 04 Nov 2006
Posts: 257

Kudos [?]: 260 [0], given: 0

Location: California

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04 Jan 2007, 14:29
OA is B..

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Intern
Joined: 30 Dec 2006
Posts: 5

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Location: USA

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04 Jan 2007, 19:53
CORRECT ANSWER IS B

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B   [#permalink] 04 Jan 2007, 19:53
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# When a company refuses to allow other companies to produce

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