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Re: A product that represents a clear technological advance over competing
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12 Feb 2022, 08:39
A product that represents a clear technological advance over competing products can generally command a high price (Looks like a general principle that is present in the market). Because technological advances tend to be quickly surpassed (It is commenting on the general principle. We can think that there is always a competition among many players for producing high-tech products) and companies want to make large profits (As mentioned in the first sentence. Advanced technology= Higher price command) while they still can, many companies charge the maximum possible price for such a product (Companies charge maximum money in the initial phases when none of the player has introduced advanced product) (Basically, it is company's strategy to charge more till the time no new competitor comes into the market) . But large profits on the new product will give competitors a strong incentive to quickly match the new product's capabilities (It says that high profits drive more companies to manufacture more high-tech product. Obviously, what is hot in the market raises competition). Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price (This is the suggested strategy by the author that if a company has same thing to offer on less price than what others are offering, consumers will buy that more, increasing the profits).
Notice that the strategy suggested by the author is different from the strategy currently practiced.
In the argument above, the two portions in boldface play which of the following roles?
(A) The first is a consideration raised to argue that a certain strategy is counterproductive (Nowhere in the argument it is mentioned that any strategy is counterproductive. Only alternate strategy is introduced by the author); 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 ('that' here refers to the recommended strategy, and 2nd BF is certainly not the recommended strategy by the author).
(C) The first is a consideration raised to help explain the popularity of a certain strategy ('Popularity' here refers to 'Reason'. The reason that companies charge more in the initial phase is that they probably have small window to do so, until other competitors come in the picture); the second presents that strategy (Yes, second is that strategy- charge high).
(D) The first is an assumption (Not an assumption. It is 'Actual practice'), 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 adopting a certain strategy; the second presents the intended outcome (It is not intended outcome. It is the actual outcome) of that strategy.