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When malaria rates in a tropical country are high ..

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Director
Status: 1,750 Q's attempted and counting
Affiliations: University of Florida
Joined: 09 Jul 2013
Posts: 514

Kudos [?]: 1017 [0], given: 630

Location: United States (FL)
Schools: UFL (A)
GMAT 1: 600 Q45 V29
GMAT 2: 590 Q35 V35
GMAT 3: 570 Q42 V28
GMAT 4: 610 Q44 V30
GPA: 3.45
WE: Accounting (Accounting)
When malaria rates in a tropical country are high .. [#permalink]

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03 Oct 2013, 12:42
00:00

Difficulty:

15% (low)

Question Stats:

85% (01:19) correct 15% (01:56) wrong based on 106 sessions

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Which of the following most logically completes the argument below?

When malaria rates in a tropical country are high, drug companies reduce the cost of many
kinds of anti-parasite medications. The reason is that drug companies want to take in as
much money as possible in medication sales so that they can invest the money into
research for more profitable drugs. Anti-parasite drug cost reductions are likely to
achieve this objective since __________.

(A) when prices decrease, more companies enter the market with competing anti-parasite drugs
(B) drug companies that spend a smaller percentage of revenues on research are unable
to take advantage of anti-parasite drug cost reductions for this reason
(C) many more people will purchase anti-parasite medications if the price is lower than if the
price remained the same
(D) an increase in the number of anti-parasite drugs sold raises the likelihood that some species
of parasite will mutate so that the drug is not effective against it
(E) resulting research is unlikely to result in a malaria vaccine

Source: GMAT Hacks - 081313
[Reveal] Spoiler: OA

Last edited by avohden on 06 Oct 2013, 07:08, edited 2 times in total.

Kudos [?]: 1017 [0], given: 630

Director
Status: 1,750 Q's attempted and counting
Affiliations: University of Florida
Joined: 09 Jul 2013
Posts: 514

Kudos [?]: 1017 [0], given: 630

Location: United States (FL)
Schools: UFL (A)
GMAT 1: 600 Q45 V29
GMAT 2: 590 Q35 V35
GMAT 3: 570 Q42 V28
GMAT 4: 610 Q44 V30
GPA: 3.45
WE: Accounting (Accounting)
Re: When malaria rates in a tropical country are high ... [#permalink]

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03 Oct 2013, 12:46
Official Explanation

Answer: C Without the presence of additional evidence or logic from an answer choice, the argument doesn't make complete sense. Lowering the cost of a drug doesn't necessarily mean that the seller of a drug would make "as much money as possible." The answer must explain why lowering the price would have this result, probably through drastically increased sales compared to the sales companies could expect if the prices were not lowered. Sure enough, that's choice (C). It solidifies the logic that lowering the price leads to taking in more money, which is the drug companies' stated goal. The other choices are not as directly related to the narrow scope of the argument, which is such a key element of the correct answer choice is any Critical Reasoning question.

Kudos [?]: 1017 [0], given: 630

Re: When malaria rates in a tropical country are high ...   [#permalink] 03 Oct 2013, 12:46
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