DO BOLD, GET BOLD !!! SAGA!!!

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DO BOLD, GET BOLD !!! SAGA!!!

by jimmyjimmy » Tue Jun 05, 2012 1:23 pm
A product that represents a clear technological advance over competing products can generally command a high price. Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the greatest price the market will bear when they have such a product. But large profits on the new product will give competitors a strong incentive to quickly match the mew product's capabilities. Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price. In the argument above, the two portions in boldface play which of the following roles?
A. The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.
B. The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.
C. The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.
D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.
E. The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.

OA-B
Source: — Critical Reasoning |

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by Kasia@EconomistGMAT » Tue Jun 05, 2012 2:52 pm
A tip:
Identify the function of only the first boldface statement at the beginning and then eliminate all the answers that are irrelevant. This will help you select the right answer much more quickly.
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by bittu.0807 » Tue Jun 05, 2012 11:56 pm
What is the difference between assumption and consideration?

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by thestartupguy » Wed Jun 06, 2012 12:58 am
bittu.0807 wrote:What is the difference between assumption and consideration?
A consideration is a premise that is explicitly stated in the argument whereas an assumption is an unstated premise. Hope it helps!

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by jimmyjimmy » Wed Jun 06, 2012 8:34 am
msr4mba wrote:
bittu.0807 wrote:What is the difference between assumption and consideration?
A consideration is a premise that is explicitly stated in the argument whereas an assumption is an unstated premise. Hope it helps!
also consideration is a deep thought expressed, whereas assumption is unstated thinking,

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by umeshpatil » Wed Jun 06, 2012 7:13 pm
For any type of product, Technical advancement demands high price. There are three major points to be considered.
1. As competitor also can adopt the technology and reach the same level very quickly. It is required to make profit quickly as much as possible by setting the high price.
2. Set the highest price at the level that market can bear.
3. The profit made with technological advancement wakes up the competitors to improve themselves.
So, both bold faced arguments support the strategy to adopt high pricing, when you have latest technology advantage. So, need to have option which shows both bold faced argument with +ve note.


A. The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.
-> Criticism is done in later part of argument(to charge less than the greatest possible price). Second argument doesn't present the course of action.
B. The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.
-> Yes. First bold faced consideration supports the strategy. As technology can be quickly surpassed, prices need to be set higher level quickly. Second argument asks to use the wisdom while adopting price. Setting high price much be estimated looking at the level market can bear.
C. The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.
-> First is ok. But second statement is not used to cast a doubt on assumption.
D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.
-> Both bold faced argument has different purposes, both doesn't support the strategy on same level.
E. The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.
->It is completely wrong.

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by Gaurav 2013-fall » Mon Jun 11, 2012 3:40 am
tough one!