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.
[b]Consequently, the strategy to maximize overall profit from a new
product is to charge less than the greatest possible price.
[/b]
[b]
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.[/b]
A product that represents a clear technological advance over
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Correctly Underlined 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.
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.
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Ans should be C
first is consideration raised to explain the appeal of a certain strategy (which is to maximise overall profits from a new product, charge less than the greatest possible price)
and second is that strategy
first is consideration raised to explain the appeal of a certain strategy (which is to maximise overall profits from a new product, charge less than the greatest possible price)
and second is that strategy
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I have actually posted and discussed this question in depth at this link https://www.beatthegmat.com/og-bold-faced-cr-t83144.html
In this thread we discuss the source, the difficulty level, the correct answer, and the incorrect answers.
In this thread we discuss the source, the difficulty level, the correct answer, and the incorrect answers.