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Dean Jones
- Master | Next Rank: 500 Posts
- Posts: 239
- Joined: Thu Oct 28, 2010 8:40 am
- Location: India
- Thanked: 5 times
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- GMAT Score:690
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.
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.
