GMAT Critical Reasoning
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 a consideration that has been raised to argue that a certain strategy is counterproductive; the second presents that strategy.
- B The first is a consideration raised to support the strategy that the argument recommends; the second presents that strategy.
- C The first is a consideration raised to explain the appeal of a certain strategy; the second presents that strategy.
- D The first is an assumption, rejected by the argument, that has been used to justify a course of action; the second presents that course of action.
- E The first is a consideration that has been used to justify pursuing a goal that the argument rejects; the second presents a course of action that has been adopted in pursuit of that goal.
Correct Answer: C