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Patents

by gmatmachoman » Sun Jan 31, 2010 3:50 am
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.
(E) Consumers care more about price than about quality.

Iam over A Vs B
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by fibbonnaci » Sun Jan 31, 2010 9:30 am
(A) Companies cannot find legal ways to produce technology similar to patented technology. [ this is a nice trap question. Patented technology cannot be remotely emulated. if it can be then it is not called patented technology. also the question mentions that companies cannot find legal ways- so it means doing it is illegal. an illegal format is not the assumption of the stimulus]

(B) Companies have an obligation to act in the best interest of the consumer. [ My answer. the whole argument talks in terms of consumer interest. So the stimulus must assume that companies have an obligation to act in the interest of the consumer.]

(C) Too many patents are granted to companies that are unwilling to share them. [ Patents are never shared. they are retained by a company. if patents were shared then there is no point in applying for a patent. there is no evidence for sharing of patents in the stimulus.]

(D) The consumer can tell the difference between patented technology and inferior imitations. [ clearly out of scope. imitations are illegal. in order to prevent them is the sole reason for the existence of patents. else the meaning of patent fails. the author has not assumed illegal stuff in the stimulus]

(E) Consumers care more about price than about quality. [ this answer choice is not substantiated anywhere in the stimulus. it just says that whn the technology is patented, prices are high and whn the patent expires, prices drop. it no where shows the preference of consumers.]

Hope this helps!
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by pkw209 » Tue Feb 02, 2010 2:57 pm
I'm between A and B as well. It comes down to attacking the premise (A) or attacking the conclusion (B)

I would go B just because I think the argument revolves around patented technology. Alternatives to patented technology would be out of scope in my mind.

Official answer?
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by gmatmachoman » Tue Feb 02, 2010 10:52 pm
OA : B
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by rahul.s » Sat Feb 13, 2010 3:09 am
good problem.

i fell for the trap by opting for A. after reading it twice, i figured that B's the right answer.

'When a company refuses to allow other companies to produce patented technology, the consumer invariably loses.'
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by gmatmachoman » Sat Feb 13, 2010 10:24 pm
rahul.s wrote:good problem.

i fell for the trap by opting for A. after reading it twice, i figured that B's the right answer.

'When a company refuses to allow other companies to produce patented technology, the consumer invariably loses.'
Thx man!! Atleast u accepted this one is a quality problem...
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by komal » Tue Feb 16, 2010 6:32 am
]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.
Incorrect : Issue is not about legal/illegal ways. It is about Patents. Eliminated.

(B) Companies have an obligation to act in the best interest of the consumer.
Correct : This is the central idea of the entire passage. It is written with the conusmers' interest in mind.

(C) Too many patents are granted to companies that are unwilling to share them.
Incorrect : Sharing of patents is new topic introduced here. Eliminated.

(D) The consumer can tell the difference between patented technology and inferior imitations.
Incorrect : Inferior Imitations again is a new topic here.

(E) Consumers care more about price than about quality.
Incorrect : Quality is not mentioned in the stimulus above. Eliminated
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