Gmat Set CR

[sparsh.21]

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 greatest price the market will bear when they have such a product. But large profits on the new product will give competitors a strong incentive to quickly match the mew 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....

OA B

[cramya]

Rule out A and C as the first bold face line is defnitely not an assumption.

Between B,D,E

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.

technological advances tend to be quickly surpassed is defnitely not a consideration to show that a certain strategy is unlikely to achieve the intended effect since the second bold face does this by questioning the wisdom of such a approach.

Eliminate

D

The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration


The first is a consideration raised in support of a strategy the argument endorses - This does not support the strategy the argument endorses which is to maximize overall profit from a new product it is best is to charge less than the greatest possible price.

Eliminate

B stands out.

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


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.

Hope this helps!

[maihuna]

Note: I haven't seen OA to answer this post:

Bold1:technological advances tend to be quickly surpassed

Bold2:large profits on the new product will give competitors a strong incentive to quickly match the mew product’s capabilities

About the variants used for the two options:
First:1The first is an assumption that forms the basis for a course of action that the argument criticizes;
The first is an assumption that has been used to justify a certain strategy

First2: The first is a consideration raised to explain the appeal of a certain strategy
The first is a consideration raised in support of a strategy the argument endorses
The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect

The first choice for me is to see whether the first one can be an assumption? The logic starts with Because...so it cannt be an assumption...it must be some sort of consideration...

So I will keep BDE alive:
Take a moment to find out what the strategy is: Not to maximise profit as that will give advantage to rivals and why so since technologies can be overcome easily....so E is out, this consideration is not against any sort of strategy...otherwise technological advances should have been easy to surpas..
let us see the second part to see the choice B D:
D: the second presents grounds in support of that consideration. It looks attractive to me as thats what it all says
B:the second is a consideration raised to call into question the wisdom of adopting that strategy.

Humm why so, it is agianst the strategy...so i MEAN D, WHERE AM I WRONG..IN FINDING STRATEGY?

[ashley.com]

I'd say D, but I'm afraid more because of my intuition than any logic.