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E is a better answer, but E is not a perfect answer.
If C) is changed to the following, it would be a better answer:
C) The first is a consideration raised to explain the appeal of a
certain strategy; the second presents another, better strategy.
First Strategy : many companies charge the greatest price the market
will bear when they have such a (high-tech) product
Consideration raised to explain the appeal of the above strategy:
boldface part 1
Another strategy recommended by the author: boldface part 2.
Based on the stimulus, the companies have one goal in mind, namely, to
make as large a profit as possible. Then the argument is revolving
around two different strategies for achieving that goal.
The first strategy is to set the price of the high-tech product as high
as possible in a given market. To explain the reason for this stategy,
the argument cites that eventally the new technology will be outdated
and a company has to reap the profit fast. However, the first strategy
is rejected on the ground that, setting such a high price will attract
competitors into the market more quickly, decrease the market share of
the first company, and will thus lead to smaller profits in the long
run. In the end, the argument endorses a second strategy: namely,
charging a price that is somewhat lower than the maximum possible
price.