medium · LSAT Logical Reasoning

The town committee's decision to cancel this year's harvest festival was unjustified. The stated reason was a projected budget shortfall, yet the festival has in every prior year generated more revenue than it cost to stage. Moreover, the festival builds goodwill with local businesses, yielding benefits that no budget ledger captures.

The main conclusion of the argument is that

  1. The festival should be canceled only when its projected direct cost exceeds its projected direct revenue.
  2. The committee's decision to cancel this year's harvest festival was unjustified.
  3. The harvest festival has in every prior year generated more revenue than it cost to stage.
  4. The harvest festival builds goodwill with local businesses, yielding benefits no ledger captures.
  5. The committee cited a projected budget shortfall as the reason for cancellation.

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