medium · LSAT Logical Reasoning

A retail chain noticed that its stores in towns with populations under 10,000 had higher profit margins than its stores in larger cities. The CEO concluded that small-town consumers are more loyal to established brands than city-dwellers are.

The CEO's reasoning is most vulnerable to criticism on the grounds that it

  1. overlooks that lower operating costs in small towns could by themselves account for the higher profit margins
  2. presumes that the typical consumer in a larger city is not genuinely loyal to any established brand at all
  3. takes for granted that brand loyalty is the single most important driver of any retail store's overall success
  4. ignores that a number of the chain's individual stores in large cities are nonetheless highly profitable too
  5. assumes that profit margin alone is the only genuinely valid measure of a given retail store's performance

Sign up free to see the explanation and track your rank →

More LSAT Logical Reasoning practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 75,000+ practice questions, 26,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials