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# When a company refuses to allow other companies to produce

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

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21 Jul 2016, 05:06
Top Contributor
nitya34 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 patent expires, 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?

(A) Companies cannot find legal ways to produce technology similar to patented technology.
(B) Companies have an obligation to act in the best interest of the consumer.
(C) Too many patents are granted to companies that are unwilling to share them.
(D) The consumer can tell the difference between patented technology and inferior imitations.

[Reveal] Spoiler: OA
B

There are many possible presupposes,so I followed the process of elimination to get the question Correct

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 patent expires, 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?

(A) Companies cannot find legal ways to produce technology similar to patented technology. .......>Outside the scope of the argument
(B) Companies have an obligation to act in the best interest of the consumer. ...........>Correct.it is necessarily assumed to hold the argument valid/true
(C) Too many patents are granted to companies that are unwilling to share them. ........>New information that is outside the scope of the argument
(D) The consumer can tell the difference between patented technology and inferior imitations. ......>New information that is outside the scope of the argument

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

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11 Mar 2017, 03:28
after rethinking i got know how option A is irrelevant or does not affect to the conclusion at all
specially thanks to the man babyif19
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Re: When a company refuses to allow other companies to produce [#permalink]

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06 Apr 2017, 19:12
nitya34 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 patent expires, 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?

(A) Companies cannot find legal ways to produce technology similar to patented technology.
(B) Companies have an obligation to act in the best interest of the consumer.
(C) Too many patents are granted to companies that are unwilling to share them.
(D) The consumer can tell the difference between patented technology and inferior imitations.

OFFICIAL EXPLANATION

The conclusion of the argument is that companies should allow other manufacturers to license patented technology. The basis for that claim is that not doing so keeps prices high and harms the consumer. We're asked what the argument assumes ("presupposes") in drawing its conclusion. The correct answer will fill the logic gap between the idea that keeping prices high harms the consumer and that companies should allow other manufacturers to license patented technology. The conclusion is based on the assumption that companies have an obligation of some kind to do what's best for the consumer.

(A) This does not address the moral obligation to the consumers (i.e. “should”) of the companies who produced the patented technology, the main point of the conclusion. Furthremore, even if companies could find legal ways to produce similar technologies, the patented technology could still command exorbitant prices, thereby harming the consumer.

(B) CORRECT. The conclusion only makes sense if companies have an obligation to act in the best interest of the customer, as this choice states.

(C) This generally follows along with the author's claim, but we are not required to assume this in order to reach the conclusion that companies who are granted patents are obligated to look out for the best interests of their customers.

(D) This addresses a tangential issue of whether or not consumers could notice the difference between a new patented technology and a possible imitation. This does not address the core issue of the obligation to the consumer.

(E) This does not address the obligation of the companies toward the consumers, or indeed the companies at all.
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Re: When a company refuses to allow other companies to produce [#permalink]

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12 Apr 2017, 08:52
The premise is about X: The CONSUMER loses when a company refuses to allow other companies to produce patented technology.
The conclusion is about Y: COMPANIES should therefore allow other manufacturers to license patented technology.

The assumption is that X is linked to Y: that, because the CONSUMER loses, COMPANIES should change what they are doing -- even though these companies can charge EXORBITANT prices. Why should a company that can charge exorbitant prices change its business model? What's bad for the consumer clearly is GOOD for the company.

Answer choice B exposes the assumption:

For the conclusion here to be valid, it MUST BE TRUE THAT companies have an obligation to act in the best interest of the consumer.

If this answer choice is negated -- if companies DO NOT have an obligation to act in the best interest of the consumer -- then they have no reason to license patented technology, invalidating the conclusion of the passage.

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

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07 May 2017, 08:57
Nice question:
Premise : Patented technology if allowed to be used bring profits for the company who has the patent. Price is high for customers
When patent expires price is low for customers. But why company who has the patent suffer this drop of revenue?
Conclusion: Company should allow its patent to be used.
Assumption: Company should go from cycle of profits to loss only as they have obligation towards customers.

Clearly option b).
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Re: When a company refuses to allow other companies to produce [#permalink]

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21 May 2017, 01:03
Hi,
If we negate option A: Companies can find legal ways to produce technology similar to patented technology. So, since there will be no monopoly, consumers will not have to pay high prices and hence licensing of patented technology will not be a requirement.

A passes the negation test, why is it still incorrect?
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Re: When a company refuses to allow other companies to produce [#permalink]

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28 Aug 2017, 10:17
1
This post was
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Here, conclusion is : Companies should therefore allow other manufacturers to license patented technology.
Only B supports this conclusion
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Re: When a company refuses to allow other companies to produce [#permalink]

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28 Aug 2017, 22:20
Imo B
The only reason the argument went at length to cite the practise by the companies as bad is that the consumer is not benefitted.
So you see B is our assumption.

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

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30 Aug 2017, 10:25
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 patent expires, 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?

(A) Companies cannot find legal ways to produce technology similar to patented technology. -This is similar to what is given in the passage. We already know that there is no direct competition. Incorrect.
(B) Companies have an obligation to act in the best interest of the consumer. -Correct. Since there is an obligation to act in interest of the consumer, licensing of the patent should be allowed.
(C) Too many patents are granted to companies that are unwilling to share them. -Irrelevant
(D) The consumer can tell the difference between patented technology and inferior imitations. -Irrelevant
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Re: When a company refuses to allow other companies to produce   [#permalink] 30 Aug 2017, 10:25

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