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badpoem: Master | Next Rank: 500 Posts; Posts: 139; Joined: Sat May 01, 2010 11:06 pm; Thanked: 4 times; GMAT Score:710

by badpoem » Sun Sep 04, 2011 9:25 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.

Answer with an explanation please.

Source: Beat The GMAT — Critical Reasoning | Sun Sep 04, 2011 9:25 am

saketk: Legendary Member; Posts: 608; Joined: Sun Jun 19, 2011 11:16 amFollowed by: 8 members; Thanked: 37 times

by saketk » Sun Sep 04, 2011 9:47 am

badpoem 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.
E) Consumers care more about price than about quality.

Answer with an explanation please.

A very nice question.

I arrived at the answer using the elimination method.

Starting with the easy one --

E -- We are not talking about the quality anywhere in the question -- Eliminate this choice
D -- Assumes that other companies will produce inferior products. Again, this is not mentioned anywhere in the question -- Eliminate
C- A new information ... where in the question it is given that the large number patents are only granted to few companies- Eliminate
A -- This is a nice trap

.. Well talking about the legal process, we know that Patents can only be acquired through Legal Processes and not by any other means.. So using legal process against something which is acquired legally does not makes any sense.

only choice left is B--- Only this choice talks about the customer interest (the main topic of the question)

badpoem: Master | Next Rank: 500 Posts; Posts: 139; Joined: Sat May 01, 2010 11:06 pm; Thanked: 4 times; GMAT Score:710

by badpoem » Sun Sep 04, 2011 9:52 am

If A) were "Companies cannot find ANY way to produce technology similar to patented technology. "

instead of

A) Companies cannot find legal ways to produce technology similar to patented technology.

Then?

Is the word "legal" jeopardising A's chances?

ColumbiaVC: Senior | Next Rank: 100 Posts; Posts: 93; Joined: Sun Jul 17, 2011 10:30 amFollowed by: 2 members; Thanked: 1 times

by ColumbiaVC » Sun Sep 04, 2011 12:42 pm

thestartupguy: Master | Next Rank: 500 Posts; Posts: 150; Joined: Thu May 05, 2011 10:04 amFollowed by: 4 members; Thanked: 5 times

by thestartupguy » Fri Oct 28, 2011 6:45 am

IMO B

vinayaerostar: Junior | Next Rank: 30 Posts; Posts: 13; Joined: Thu Oct 20, 2011 7:06 pm

by vinayaerostar » Fri Oct 28, 2011 7:58 am

My Opininon:

B) Companies have an obligation to act in the best interest of the consumer.
If this is true then the conclusion "Companies should therefore allow other manufacturers to license patented technology" will not be true. The manufacture of the technology doesn't have any control after the patent get expired resulting other manufacturer to copy the technology and sell it at cheaper cost. The consumer interest will be best served if there will be free competion in the market and they get the product in cheap rate. So this is not a valid assumption.

Hence the best option for this question is A.

Let me know the OA and comment on my reasoning.

vaibhavgupta: Master | Next Rank: 500 Posts; Posts: 416; Joined: Tue Aug 30, 2011 2:18 pmFollowed by: 9 members; Location: Delhi, India; Thanked: 13 times

by vaibhavgupta » Fri Oct 28, 2011 8:22 am

badpoem 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.
E) Consumers care more about price than about quality.

Answer with an explanation please.

IMO A

OA?

mankey: Legendary Member; Posts: 627; Joined: Thu Jun 23, 2011 9:12 amFollowed by: 1 member; Thanked: 4 times

by mankey » Sun Oct 30, 2011 9:31 am

Clearly B. What is the OA?

Thanks.

ranjeet75: Master | Next Rank: 500 Posts; Posts: 242; Joined: Fri Aug 01, 2008 8:49 am; Location: Delhi; Thanked: 6 times

by ranjeet75 » Thu Dec 01, 2011 9:23 pm

Is the OA B? Please mention OA.

GmatVerbal: Master | Next Rank: 500 Posts; Posts: 138; Joined: Thu Nov 12, 2009 10:07 amFollowed by: 3 members; Thanked: 19 times

by GmatVerbal » Fri Dec 02, 2011 1:45 pm

Argument Reasoning :

Company refuses to allow other companies to use ==(1)=> prises raise ==(2)=> consumer looses ==(3)=> so company should allow other companies to use( conclusion).

Link(3) has a huge gap. consumer looses ===> [as company works in the best interests of consumers] => company should allow other companies to use;

Answer (B);

tuanquang269: Master | Next Rank: 500 Posts; Posts: 296; Joined: Sun May 29, 2011 5:10 amFollowed by: 5 members; Location: Vietnam; Thanked: 10 times

by tuanquang269 » Sun Dec 11, 2011 8:11 am

First, this is assumption question.

We negate A => A) Companies can find legal ways to produce technology similar to patented technology. => Companies should therefore allow other manufacturers to license patented technology.

This does not make any sense.

If negate B: Companies do not have to act in the best interest of the consumer. => attack the conclusion that Companies should therefore allow other manufacturers to license patented technology.

So, correct choice is B

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