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 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?
GWD1-Q3: A productthat represents a clear technological advance over competing products cangenerally command a high price. Because technological advances tend to be quicklysurpassed and companies want to make large profits while they still can,many companies charge the greatest price the market will bear when they havesuch a product. But large profits on the mew product will give competitors a strongincentive to quickly match the mew product’s capabilities. Consequently, the strategy to maximizeoverall profit from a new product is to charge less than the greatest possibleprice. In theargument above, the two portions in boldfaceplay which of the following roles?
A. The first is an assumption that forms thebasis for a course of action that the argument criticizes; the second presentsthe course of action endorsed by the argument. B. The first is a consideration raised toexplain the appeal of a certain strategy; the second is a consideration raisedto call into question the wisdom of adopting that strategy. C. The first is an assumption that has beenused to justify a certain strategy; the second is a consideration that is usedto cast doubt on that assumption. D. The first is a consideration raised insupport of a strategy the argument endorses; the second presents grounds insupport of that consideration. E. The first is a consideration raised to showthat adopting a certain strategy is unlikely to achieve the intended effect;the second is presented to explain the appeal of that strategy.