Practice All GMAT Critical Reasoning Questions

Select your questions:

Question 1

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 mew 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.