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Technology BF

Expert replies
by ssgmatter » Wed May 05, 2010 8:19 am
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 an assumption that forms the basis for a course of action that the
argument criticizes; the second presents the course of action endorsed by the
argument.
B. The first is a consideration raised to explain the appeal of a certain strategy;
the second is a consideration raised to call into question the wisdom of
adopting that strategy.
C. The first is an assumption that has been used to justify a certain strategy; the
second is a consideration that is used to cast doubt on that assumption.
D. The first is a consideration raised in support of a strategy the argument
endorses; the second presents grounds in support of that consideration.
E. The first is a consideration raised to show that adopting a certain strategy is
unlikely to achieve the intended effect; the second is presented to explain the
appeal of that strategy.

Please explain each of the options in details with reasons to eliminate all but choose one

Many thanks!
Best-
Amit
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Source: — Critical Reasoning |

by kevincanspain » Wed May 05, 2010 8:25 am
ssgmatter wrote: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 an assumption that forms the basis for a course of action that the
argument criticizes; the second presents the course of action endorsed by the
argument.
B. The first is a consideration raised to explain the appeal of a certain strategy;
the second is a consideration raised to call into question the wisdom of
adopting that strategy.
C. The first is an assumption that has been used to justify a certain strategy; the
second is a consideration that is used to cast doubt on that assumption.
D. The first is a consideration raised in support of a strategy the argument
endorses; the second presents grounds in support of that consideration.
E. The first is a consideration raised to show that adopting a certain strategy is
unlikely to achieve the intended effect; the second is presented to explain the
appeal of that strategy.

Please explain each of the options in details with reasons to eliminate all but choose one

Many thanks!
Kevin Armstrong
GMAT Instructor
Gmatclasses
Madrid
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by ssgmatter » Wed May 05, 2010 8:27 am
I am sorry!....My mistake.....I somehow missed to highlight the BF's

Thankyou Kevin for correcting my post.
Best-
Amit
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by paddle_sweep » Wed May 05, 2010 8:40 am
IMO it's [spoiler]'B'.[/spoiler]
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by ssgmatter » Wed May 05, 2010 8:44 am
All,

Can anyone please share all the terminologies used to solve the BF questions....I mean the meaning of claim, fact,prediction in BF terms....This would be helpful for all the GMATTERS.

Please add on anything if I missed out on any other important aspects

Also please explain this question with reasons.

Many thanks!
Best-
Amit
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by sumanr84 » Wed May 05, 2010 10:06 am
IMO : B , I got below explanation from some link so posting for refn,

The first is a consideration raised to explain the appeal of a certain strategy ->Yes it is since the first startegy thats being discussed (not what the argument finally endorses) is that a product that represents a clear technological advance over competing products can generally command a high price.

the second is a consideration raised to call into question the wisdom of adopting that strategy-> large profits on the new product will give competitors a strong incentive to quickly match the mew product's capabilities questions the wisdom of the first strategy presented which is that a product must be charrged the highest price possible if it technolgically the most advanced in the market.
I am on a break !!
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by wilson4mba » Sun Jun 27, 2010 6:29 pm
the correct answer is B
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