The patent on the molecule that is central to a popular low-calorie sweetener recently expired, meaning that the molecule can...
GMAT Critical Reasoning : (CR) Questions
The patent on the molecule that is central to a popular low-calorie sweetener recently expired, meaning that the molecule can now be used by companies other than the sweetener's inventor. During the time the company has held the monopoly on the sweetener, it has accounted for a large percentage of the company's sales and profits. Yet the company is unconcerned about the possibility that the popular low-calorie sweetener will lose sales or profits to competing versions of the sweetener.
Which of the following, if true, would most clearly explain the company's attitude?
Passage Analysis:
Text from Passage Analysis The patent on the molecule that is central to a popular low-calorie sweetener recently expired, meaning that the molecule can now be used by companies other than the sweetener's inventor.
- What it says: The patent protection ended, so other companies can now make the same sweetener
- What it does: Sets up the competitive threat scenario
- What it is: Background factual information
- Visualization: Before: Company A has exclusive rights to sweetener molecule → After: Companies A, B, C, D can all use the same molecule
During the time the company has held the monopoly on the sweetener, it has accounted for a large percentage of the company's sales and profits.
- What it says: This sweetener has been a huge money-maker for the company during its exclusive period
- What it does: Shows how important this product is to the company's business
- What it is: Company financial information
- Visualization: Company Revenue: Sweetener = 60-70% of total sales and profits, Other products = 30-40%
Yet the company is unconcerned about the possibility that the popular low-calorie sweetener will lose sales or profits to competing versions of the sweetener.
- What it says: Despite the potential threat, the company isn't worried about losing business
- What it does: Creates a puzzle by contrasting the expected concern with the actual lack of concern
- What it is: Author's observation about company attitude
- Visualization: Expected reaction: Company worried about competition → Actual reaction: Company relaxed and unconcerned
Argument Flow:
The argument presents a business puzzle. It first explains that a patent expired, opening up competition for a product that's been hugely profitable for the original company. Then it shows us the surprising fact that the company isn't worried about this competition.
Main Conclusion:
There's no explicit conclusion stated - this is a paradox that needs explanation. The puzzle is why the company remains unconcerned despite facing new competition for their major profit source.
Logical Structure:
This isn't a traditional argument with premises supporting a conclusion. Instead, it's a scenario that creates a logical puzzle: given that competition typically threatens profits, and this product is crucial to the company's success, why isn't the company worried? We need to find information that would resolve this apparent contradiction.
Prethinking:
Question type:
Paradox - We need to find information that explains why the company isn't worried about losing sales and profits from their formerly exclusive sweetener, even though it was a huge part of their business and competitors can now make the same product.
Precision of Claims
The key claims are very specific: the patent expired (timing), the sweetener accounted for a 'large percentage' of sales and profits (quantity), and the company is 'unconcerned' about losing business to competitors (attitude). We need to respect all these facts while explaining the seemingly contradictory attitude.
Strategy
For paradox questions, we need to find scenarios that make the company's unconcerned attitude make perfect sense. We should think about reasons why losing patent exclusivity might not actually threaten their sales and profits from this sweetener. The key is finding logical explanations that reconcile the apparent contradiction between having a lot to lose and not being worried about it.