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 consumers in larger cities are not loyal to any brand at all
  3. takes for granted that brand loyalty is the single most important driver of a store's success
  4. ignores that some stores in large cities are nonetheless highly profitable
  5. assumes that profit margin is the only valid measure of a store's performance

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