Maximize profit

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Maximize profit

by Dean Jones » Sun Dec 11, 2011 10:19 am
Dear Friends,

I was having problems in answering the following question.

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 maximum possible price for
such a product
. But large profits on the new product will give competitors a strong incentive to quickly match the new 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 a consideration that has been raised to argue that a certain strategy is counterproductive; the second presents that strategy.
B. The first is a consideration raised to support the strategy that the argument recommends; the second presents that strategy.
C. The first is a consideration raised to explain the appeal of a certain strategy; the second presents that strategy.
D. The first is an assumption, rejected by the argument, that has been used to justify a course of action; the second presents that course of action.
E. The first is a consideration that has been used to justify pursuing a goal that the argument rejects; the second presents a course of action that has been adopted in pursuit of that goal.


Please help.

OA after some discussions.

Regards
Deano.
Source: — Critical Reasoning |

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by tuanquang269 » Sun Dec 11, 2011 8:24 pm
Dean Jones wrote:Dear Friends,

I was having problems in answering the following question.

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 maximum possible price for
such a product
. But large profits on the new product will give competitors a strong incentive to quickly match the new 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 a consideration that has been raised to argue that a certain strategy is counterproductive; the second presents that strategy. => the 2nd strategy is productive, not counterproductive. So, wrong.
B. The first is a consideration raised to support the strategy that the argument recommends; the second presents that strategy. => 1st against 2nd. So, wrong
C. The first is a consideration raised to explain the appeal of a certain strategy; the second presents that strategy. => 1st is strategy how to maximize profit but failed, 2nd is another strategy that maximize profit (the appeal)
D. The first is an assumption, rejected by the argument, that has been used to justify a course of action; the second presents that course of action. => like B, 1st not used to justify 2nd
E. The first is a consideration that has been used to justify pursuing a goal that the argument rejects; the second presents a course of action that has been adopted in pursuit of that goal.
=> "maximizing profit" is not rejected by the argument. So, this answer is wrong.
Hope that helps

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by Dean Jones » Sat Dec 17, 2011 10:56 am
Can anyone explain in more detail.

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by shekhar.kataria » Sat Dec 24, 2011 9:17 pm
IMO B. Whats the OA.
Restlessness and discontent are the first necessities of progress.--Thomas A. Edison

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by mankey » Sun Dec 25, 2011 4:29 am
Not very clear. Please help.

Thanks.

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by ranjeet75 » Sun Dec 25, 2011 6:15 am
IMO E

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by nileshdalvi » Fri Dec 30, 2011 9:01 am
This is one of the dubious versions of the OG Question floating around on forums. Just by changing location of boldfaces and some wordings in the answer choices. Please study only OG version of it so that there is no confusion. David has done a good job of posting it here:

https://www.beatthegmat.com/og-bold-faced-cr-t83144.html

No offence to the poster but this thread would confuse test takers.

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by tracyyahoo » Fri Dec 30, 2011 8:42 pm
You are wrong, the boldface is not the same..

However I think it is E...

nileshdalvi wrote:This is one of the dubious versions of the OG Question floating around on forums. Just by changing location of boldfaces and some wordings in the answer choices. Please study only OG version of it so that there is no confusion. David has done a good job of posting it here:

https://www.beatthegmat.com/og-bold-faced-cr-t83144.html

No offence to the poster but this thread would confuse test takers.

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by nileshdalvi » Fri Dec 30, 2011 9:20 pm
That is what I precisely said. The boldfaces are changed and also some wordings of the answer choices too. The OA mentioned is C and it is not convincing. However, the word appealed has been taken from some other similar question with bold face changed. I dont mind you practising these modified questions but just wanted to forewarn others. The above question is posted here too.

https://www.manhattangmat.com/forums/a-p ... 12085.html

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by mankey » Thu Feb 02, 2012 9:45 am
Please explain this one.

Regards.

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by jkaustubh » Wed Apr 03, 2013 1:32 am
can some body please explain as to why E is wrong/ not correct.
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