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!
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
Amit
