Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 30 Aug 2016, 22:09

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Mall owner: Our mall's occupancy rate is so low that we are

Author Message
TAGS:

### Hide Tags

Manager
Joined: 04 Nov 2012
Posts: 62
Schools: NTU '16 (A)
Followers: 1

Kudos [?]: 70 [0], given: 39

Mall owner: Our mall's occupancy rate is so low that we are [#permalink]

### Show Tags

18 Jul 2013, 07:09
4
This post was
BOOKMARKED
00:00

Difficulty:

15% (low)

Question Stats:

77% (02:26) correct 23% (01:41) wrong based on 191 sessions

### HideShow timer Statistics

Mall owner: Our mall's occupancy rate is so low that we are barely making a profit. We cannot raise rents because of unacceptably high risk of losing our tenants. On the other hand,a mall that is fully occupied costs as much to run as one with a rental space here and a rental space there free. Clearly, therefore, to increase profits we must sign up new tenants.

Which of the following, if true, weakens the argument:

A) The mall's operating costs could be cut by consolidating currently rented spaces in such a way that an entire wing of the mall could be closed up.

b)The mall is located in a geographic area where the costs for air conditioning in the summers far exceed the cost of heating during the mild winters.

C)The mall's occupancy rate though low, has been relatively stable during the last few years.

D)The mall lost tenants as a result of each of the two drastic rent increases that have occured here.

E)None of the established tenants is likely to need additional floor space in the near future.

The conclusion of the argument is that to increase profits, the mall should sign up new tenants.
We must find something that says that even after the addition of new tenants, the profits will not go up.

However, after scanning the answer choices, I could not find any which could weaken this conclusion. However, choice A, an alternate means to achieving this goal is the correct answer.

Could you explain why this is so? Clearly this is not a causal argument
[Reveal] Spoiler: OA

Last edited by Narenn on 18 Jul 2013, 11:45, edited 2 times in total.
MBA Section Director
Affiliations: GMAT Club
Joined: 22 Feb 2012
Posts: 3277
Location: India
City: Pune
GPA: 3.4
Followers: 340

Kudos [?]: 2504 [1] , given: 1855

Re: Alternate cause a weakener? [#permalink]

### Show Tags

18 Jul 2013, 07:55
1
KUDOS
Expert's post
12bhang wrote:
Mall owner: Our mall's occupancy rate is so low that we are barely making a profit. We cannot raise rents because of unacceptably high risk of losing our tenants. On the other hand,a mall that is fully occupied costs as much to run as one with a rental space here and a rental space there free. Clearly, therefore, to increase profits we must sign up new tenants.

Which of the following, if true, weakens the argument:

A) The mall's operating costs could be cut by consolidating currently rented spaces in such a way that an entire wing of the mall could be closed up.

b)The mall is located in a geographic area where the costs for air conditioning in the summers far exceed the cost of heating during the mild winters.

C)The mall's occupancy rate though low, has been relatively stable during the last few years.

D)The mall lost tenants as a result of each of the two drastic rent increases that have occurred here.

E)None of the established tenants is likely to need additional floor space in the near future.

The conclusion of the argument is that to increase profits, the mall should sign up new tenants.
We must find something that says that even after the addition of new tenants, the profits will not go up.

However, after scanning the answer choices, I could not find any which could weaken this conclusion. However, choice A, an alternate means to achieving this goal is the correct answer.

Could you explain why this is so? Clearly this is not a causal argument

While concluding that to increase profits we must sign up new tenants, it is assumed that signing new tenants is the only way to increase the profits. To weaken the conclusion we need to attack this assumption. The choice that would suggest any alternate way of increasing profit would be correct.

A) By consolidating rented spaces we can cut down the operating cost, thereby can increase the profit - no matter by what proportion will it be. So this choice is suggesting an alternate way to increase profits. This can undermine the conclusion. CORRECT

B) Cost of air conditioning the mall is more than heating it. Irrelevant. INCORRECT

C) Mall's occupancy rate has been consistently low. Hence minor profit. INCORRECT

D) This choice suggest that you can not increase the profit my increasing the rate but does not suggest any alternate way to do so. INCORRECT

E) Existing tenants will not sign new contracts for additional floor space. Out of Scope. INCORRECT
_________________
e-GMAT Representative
Joined: 02 Nov 2011
Posts: 1984
Followers: 1948

Kudos [?]: 6452 [2] , given: 260

Re: Alternate cause a weakener? [#permalink]

### Show Tags

18 Jul 2013, 09:54
2
KUDOS
Expert's post
12bhang wrote:
Mall owner: Our mall's occupancy rate is so low that we are barely making a profit. We cannot raise rents because of unacceptably high risk of losing our tenants. On the other hand,a mall that is fully occupied costs as much to run as one with a rental space here and a rental space there free. Clearly, therefore, to increase profits we must sign up new tenants.

Which of the following, if true, weakens the argument:

A) The mall's operating costs could be cut by consolidating currently rented spaces in such a way that an entire wing of the mall could be closed up.

b)The mall is located in a geographic area where the costs for air conditioning in the summers far exceed the cost of heating during the mild winters.

C)The mall's occupancy rate though low, has been relatively stable during the last few years.

D)The mall lost tenants as a result of each of the two drastic rent increases that have occured here.

E)None of the established tenants is likely to need additional floor space in the near future.

The conclusion of the argument is that to increase profits, the mall should sign up new tenants.
We must find something that says that even after the addition of new tenants, the profits will not go up.

However, after scanning the answer choices, I could not find any which could weaken this conclusion. However, choice A, an alternate means to achieving this goal is the correct answer.

Could you explain why this is so? Clearly this is not a causal argument

Hi,

Narenn has very aptly explained the reason why choice A is the answer. The keyword here is "must" - the conclusion says that there is only way to increase profits i.e. by signing up new tenants. Now, in this case. anything that suggests another way to increase profits would be valid weakener. Option A does the same by focusing on reduction of costs. Another way to weaken is by suggesting a way to increase revenues without signing up new tenants.

The key to solving all CR questions is the ability to fully understand the conclusion of the argument. If you rejected option A because it is presenting an alternate way to achieve the result and the argument is not causal, then you are depending too much on frameworks and rules. You need to think on your feet. Think smartly. Think what exactly the conclusion is saying. The most important word here was "must" and if you had grasped that, the question of rejecting option A would not have arisen.

We can increase profits by signing up new tenants.

In such a case, option A would not be the correct answer, as my article on Alternate cause explains.

Hope this helps.

Regards,
Chiranjeev
_________________

| '4 out of Top 5' Instructors on gmatclub | 70 point improvement guarantee | www.e-gmat.com

Manager
Joined: 11 Aug 2011
Posts: 196
Location: United States
Concentration: Economics, Finance
GMAT Date: 10-16-2013
GPA: 3
WE: Analyst (Computer Software)
Followers: 9

Kudos [?]: 175 [0], given: 886

Re: Mall owner: Our mall's occupancy rate is so low that we are [#permalink]

### Show Tags

27 Dec 2013, 00:00
Thank you Chiranjeev for the very nice explanation.
I too had made the mistake to not consider "Must" in the argument.
The takeaway from this question is always read the conclusion in detail and dont miss out on small details in the conclusion.
_________________

Kudos me if you like my post !!!!

Intern
Joined: 22 Jul 2009
Posts: 10
Followers: 0

Kudos [?]: 1 [0], given: 0

Re: Mall owner: Our mall's occupancy rate is so low that we are [#permalink]

### Show Tags

27 Dec 2013, 08:15
I used POE to find the Answer.
sometime wording is difficult to understand .
so better to scan other options.
in this case other choices were easier to eliminate..
Current Student
Joined: 04 May 2013
Posts: 354
Location: India
Concentration: Operations, Human Resources
Schools: ISB '16, IIMA (M)
GPA: 4
WE: Human Resources (Human Resources)
Followers: 1

Kudos [?]: 106 [0], given: 70

Re: Mall owner: Our mall's occupancy rate is so low that we are [#permalink]

### Show Tags

27 Dec 2013, 09:59
Mall owner: Our mall's occupancy rate is so low that we are barely making a profit. We cannot raise rents because of unacceptably high risk of losing our tenants. On the other hand,a mall that is fully occupied costs as much to run as one with a rental space here and a rental space there free. Clearly, therefore, to increase profits we must sign up new tenants.

The following emerges-
Premise- The mall has empty spaces.
Premise- Operating costs remain same for fully occupied mall or one with spaces, as here.

Ans should give alternative that can increase profits.

A) The mall's operating costs could be cut by consolidating currently rented spaces in such a way that an entire wing of the mall could be closed up.

This suggests an alternative. Signing new tenants is not a must for profit making anymore !!!! Correct answer...
Intern
Joined: 30 Aug 2010
Posts: 11
Followers: 0

Kudos [?]: 6 [0], given: 6

Re: Mall owner: Our mall's occupancy rate is so low that we are [#permalink]

### Show Tags

30 Jul 2014, 02:56
I narrowed this one down to A and D. In other words, I reached one of the hardest steps in solving CR questions: find which one is better!

I discarded D because of only one word "drastic". So, previously the mall imposed some drastic increases in rent. Consequently, the mall lost tenants. However, the argument does not imply whether the owner intends to increase the rent for 10% or for 100%. While it is true that answer choice D is a contender and a trap answer, it fails the "one word" test.
Manager
Joined: 24 Nov 2013
Posts: 60
Followers: 0

Kudos [?]: 9 [0], given: 115

Re: Mall owner: Our mall's occupancy rate is so low that we are [#permalink]

### Show Tags

06 Sep 2015, 05:00
igormkd wrote:
I narrowed this one down to A and D. In other words, I reached one of the hardest steps in solving CR questions: find which one is better!

I discarded D because of only one word "drastic". So, previously the mall imposed some drastic increases in rent. Consequently, the mall lost tenants. However, the argument does not imply whether the owner intends to increase the rent for 10% or for 100%. While it is true that answer choice D is a contender and a trap answer, it fails the "one word" test.

D can be eliminated with this reasoning -
the argument is saying we cannot raise rents. So raising rent is ruled out. In addition, D talks about the past. hence we can eliminate it.
Director
Joined: 18 Sep 2014
Posts: 971
Location: India
Followers: 27

Kudos [?]: 427 [0], given: 59

Mall owner: Our mall's occupancy rate is so low that we are [#permalink]

### Show Tags

18 Apr 2016, 15:22
Mall's occupancy rate is low that we are barely making a profit. We cannot raise rents because of unacceptably high risk of losing our tenants. On the other hand,a mall that is fully occupied costs as much to run as one with a rental space here and a rental space there free. Clearly, therefore, to increase profits we must sign up new tenants.

Which of the following, if true, weakens the argument:

A) The mall's operating costs could be cut by consolidating currently rented spaces in such a way that an entire wing of the mall could be closed up......................so this option indicates that it is not must to sign up tenants, mall can increase it s profits by decreasing existing costs as well. Thus weakener.

b)The mall is located in a geographic area where the costs for air conditioning in the summers far exceed the cost of heating during the mild winters.............so certain costs cannot be reduced and signing up new tenants is preferred. opposite......i.e., strengthener

C)The mall's occupancy rate though low, has been relatively stable during the last few years...............we need a change or a reason behind the same. This does not affect the conclusion.

D)The mall lost tenants as a result of each of the two drastic rent increases that have occurred here..............this instance supports the argument info but does not say anything regarding the conclusion.

E)None of the established tenants is likely to need additional floor space in the near future.........floor space is out of concern here.
_________________

The only time you can lose is when you give up. Try hard and you will suceed.
Thanks = Kudos. Kudos are appreciated

http://gmatclub.com/forum/rules-for-posting-in-verbal-gmat-forum-134642.html
When you post a question Pls. Provide its source & TAG your questions
Avoid posting from unreliable sources.

My posts
http://gmatclub.com/forum/beauty-of-coordinate-geometry-213760.html#p1649924
http://gmatclub.com/forum/calling-all-march-april-gmat-takers-who-want-to-cross-213154.html
http://gmatclub.com/forum/possessive-pronouns-200496.html
http://gmatclub.com/forum/double-negatives-206717.html
http://gmatclub.com/forum/the-greatest-integer-function-223595.html#p1721773

Senior Manager
Joined: 15 Oct 2015
Posts: 378
Concentration: Finance, Strategy
GMAT 1: 630 Q39 V38
GMAT 2: 690 Q36 V48
GPA: 3.93
WE: Account Management (Retail Banking)
Followers: 3

Kudos [?]: 50 [0], given: 211

Re: Mall owner: Our mall's occupancy rate is so low that we are [#permalink]

### Show Tags

20 Apr 2016, 03:19
The Hackneyed but not worn out RULE OF THUMB for weakening a cause-effect argument is.

Opposite effect and Alternate cause weakens the conclusion.

A is an alternative cause.
Reducing cost might effectively increase profit even without increasing revenue.

Now that's microeconomics.
Re: Mall owner: Our mall's occupancy rate is so low that we are   [#permalink] 20 Apr 2016, 03:19
Similar topics Replies Last post
Similar
Topics:
3 Mall owner: Our mall's occupancy rate is so low 3 22 Dec 2014, 10:17
7 A developer wants to build a shopping mall in a mostl 9 11 Mar 2014, 09:47
5 The executive committee of the shopping mall announced 13 14 Apr 2010, 23:16
2 The executive committee of the shopping mall announced 26 06 Aug 2009, 07:07
Whenever it is rainy, Janet goes to the mall. Therefore, it 9 25 Sep 2006, 11:18
Display posts from previous: Sort by