GMAT Practice Question Set #21 (Question 61-63)

Critical Reasoning Question #62: Celebrity-associated Products  
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A product that is endorsed by a big name celebrity has a clear competitive edge in marketing and as a result that product can generally command a high price. Because endorsement by big name celebrities tends to be short-lived (usually less than a few years) and companies want to make large profits while they still can, many companies charge the maximum possible price for such a product during the time it is associated with the celebrity. But large profits on the celebrity-associated product will give competitors a strong incentive to quickly match their own products in terms of celebrity appeal. Consequently, the strategy to maximize overall profit from a celebrity-associated 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.

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