Company A and Company B Both Produce Gold Watches.

Question: Company A and Company B both produce gold watches. Company A's watches are more expensive than those sold by Company B. Therefore, the watches produced by Company A are of a higher quality than those produced by Company B.

The argument is flawed primarily because the author

1. fails to provide any actual prices of watches produced by Company A or Company.
2. assumes that the quality of gold watches is, on average, higher than that of other types of watches
3. forms a general conclusion by including the products of only two companies
4. directly relates the price of a product to the quality of a product
5. does not support the statement that Company A's watches are more expensive than Company B's

Answer: D

Explanation:

GMAT critical reasoning tests the reasoning skills along with the candidate's logical and analytical thinking abilities. The candidate has to deduce the correct option by finding the logically correct argument.

The statement states - Company A and Company B both produce gold watches. Company A's watches are more expensive than those sold by Company B. Therefore, the watches produced by Company A are of a higher quality than those produced by Company B.

The argument is flawed primarily because the author

1. Premise A: Company A and Company B produce gold watches
   Premise B: Company A's watches cost more than Company B's
   Conclusion: Company A's watches are of better quality than Company B's
   The second premise already tells us that Company A's watches are more expensive than B's. Therefore, it doesn't really matter what the exact prices of the watches are. Knowing that Company A's watches cost $1000 while Company B's costs $500 wouldn't make the argument more logical.
2. Incorrect. The argument does not mention any other kind of watch at all. Therefore, it cannot be said that the author has assumed anything about gold watches in relation to other types of watches.
3. Incorrect. The argument concentrates on a comparison between Company A and Company B's watches. The author's conclusion involves these two companies alone and is, therefore, not general at all.
4. The author's error is a faulty assumption that because something costs more, it is of better quality. This assumption can be defined as an incorrect relationship between price and quality, as stated by this answer choice.
5. This statement is irrelevant to the given question.

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