medium · LSAT Logical Reasoning

Either the company must increase its prices or it must lay off employees to remain profitable. Since the CEO has announced that there will be no price increases this year, the company will definitely have to lay off employees.

The argument's reasoning is questionable because it

  1. presents only two routes to profitability when other viable routes may well exist.
  2. confuses a condition that is necessary with one that is sufficient.
  3. fails to show that raising prices would in fact restore the company to profitability.
  4. assumes that staying profitable is the company's sole objective.
  5. infers that layoffs are unavoidable because no one has ruled them out.

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