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# A recent development in the marketplace for consumer technol

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A recent development in the marketplace for consumer technol [#permalink]  13 Jul 2018, 10:52
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Question Stats:

54% (01:35) correct 45% (01:50) wrong based on 88 sessions
A recent development in the marketplace for consumer technology goods has been the premium placed on design—products with innovative and appealing designs relative to competing products can often command substantially higher prices. Because design innovations are quickly copied by other manufacturers though, many consumer technology companies charge as much as possible when it comes to their new designs to extract as much value as possible from their new designs. But large profits generated by the innovative design will give competitors stronger incentives to copy the designs. Therefore, the best strategy to maximize overall profit from an innovative new design 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 assists a course of action criticized by the argument; the second provides a consideration to support the argument’s recommended position.
(B) The first is a consideration that helps explain the appeal of a certain strategy; the second presents an alternative strategy endorsed by the argument.
(C) The first is an assumption that justifies a specific strategy; the second is that strategy.
(D) The first is a consideration presented to demonstrate that a particular strategy will not apply; the second is a factor cited to support the argument’s main position.
(E) The first is a factor used to justify a particular strategy; the second is a factor against that strategy.
[Reveal] Spoiler: OA

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Re: A recent development in the marketplace for consumer technol [#permalink]  19 Oct 2018, 21:49
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Re: A recent development in the marketplace for consumer technol [#permalink]  03 Nov 2018, 00:29
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Responding to a pm:

There are two strategies discussed here:
1. charge as much as possible for their new designs
2. CHARGE LESS THAN THE GREATEST POSSIBLE PRICE.

The argument endorses the second strategy.

The first statement in bold "BECAUSE DESIGN INNOVATIONS ARE QUICKLY COPIED BY OTHER MANUFACTURERS" explains the reason for the appeal of the first strategy.
The second statement in bold is the second strategy, the strategy endorsed by the argument.

Answer is option (B) (not (C)).
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Re: A recent development in the marketplace for consumer technol [#permalink]  21 Jan 2020, 21:43
I thought B, but then felt A was the better option. Can someone explain why A doesn't work?
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Re: A recent development in the marketplace for consumer technol [#permalink]  27 Jan 2020, 00:35
Expert's post

As you can see this is not an assumption but rather an explanation

The second portion

Therefore, the best strategy to maximize overall profit from an innovative new design is to charge less than the greatest possible price.

offers an alternative strategy to the usual path.

A is not possible. Notice also the signal word: therefore which indicates a conclusion of the whole argument and NOT a consideration as it is stated in A

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Re: A recent development in the marketplace for consumer technol   [#permalink] 27 Jan 2020, 00:35
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