Critical Reasoning

A product that represents a clear technological advance over competing products can generally command a high price. Surprisingly, perhaps, the strategy to maximize overall profit from a new product is to charge less than the greatest price the market will bear. Many companies charge the maximum possible price for such a product, because they want to make as much profit as they can and technological advances tend to be quickly surpassed. The drawback is that large profits on the new product give competitors a strong incentive to quickly match the new product's capabilities.

In the argument above, the two portions in boldface play which of the following roles?

A. The first is the position the argument advocates; the second presents grounds for rejecting an alternative position.
B. The first is the position the argument advocates; the second is an alternative position that the argument rejects.
C. The first presents a strategy for achieving a certain goal; the second presents a drawback to that strategy.
D. The first presents a strategy for achieving a certain goal; the second presents grounds for preferring a different goal.
E. The first presents a strategy that, according to the argument, is ineffective; the second presents a way of improving the effectiveness of that strategy.

There are various versions of this question available, but this one is directly from the Question Pack 1 software.

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