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Twenty percent of the stores in Morganville's downtown shopping distri

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Twenty percent of the stores in Morganville's downtown shopping distri  [#permalink]

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New post Updated on: 13 Sep 2018, 09:07
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Which of the following most logically completes the argument below?

Twenty percent of the stores in Morganville's downtown shopping district will fail within five years because they will be competing directly with the SaveMart discount department store newly opened in East Morganville. The downtown shopping district has lost business at this rate before and has always completely rebounded. Confidence that it will rebound again from the losses it is now about to suffer is ill founded, however, because ________ .


(A) the stores like to be put out of business by direct competition from SaveMart are the downtown shopping district's anchor stores, on whose ability to draw shoppers many of the other downtown stores depend.

(B) the bus line that has long connected the downtown are of Morganville with EastMorganville has a tradition of carrying shoppers who reside in EastMorganville into downtown Morganville to shop.

(C) when the downtown shopping district has rebounded before, the business premises of a failed business were typically taken over by a business of same kind as had been there before

(D) SaveMart's business plan for the EastMorgalvill store is based on earning low profits, if any, during the first five years of the store's existence.

(E) it is conceivable that the downtown shopping district could shrink substantially without collapsing altogether

Originally posted by anilnandyala on 05 Jan 2011, 23:27.
Last edited by Bunuel on 13 Sep 2018, 09:07, edited 1 time in total.
Renamed the topic and edited the question.
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Re: Morganville's downtown  [#permalink]

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New post 15 Apr 2011, 04:01
OA should be A.
The question says: Confidence that it will rebound again from the losses it is now about to suffer is ill founded, however, because_________________

A gives the statement y downtown shopping district will rebound, which supports the use of however whereas E gives the reason that downtown shopping district won't rebound.
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Re: Morganville's downtown  [#permalink]

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New post 15 Apr 2011, 05:22
Confidence that it will rebound again from the losses it is now about to suffer is ill founded, however, because ________ .
Pardon me. I think you mean - A provides the reason why the downtown stores will not rebound and E provides the opposite reason - why they will.

varunmaheshwari wrote:
OA should be A.
The question says: Confidence that it will rebound again from the losses it is now about to suffer is ill founded, however, because_________________

A gives the statement y downtown shopping district will rebound, which supports the use of however whereas E gives the reason that downtown shopping district won't rebound.
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Re: Morganville's downtown  [#permalink]

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New post 15 Apr 2011, 08:04
gmat1220 wrote:
Confidence that it will rebound again from the losses it is now about to suffer is ill founded, however, because ________ .
Pardon me. I think you mean - A provides the reason why the downtown stores will not rebound and E provides the opposite reason - why they will.

varunmaheshwari wrote:
OA should be A.
The question says: Confidence that it will rebound again from the losses it is now about to suffer is ill founded, however, because_________________

A gives the statement y downtown shopping district will rebound, which supports the use of however whereas E gives the reason that downtown shopping district won't rebound.


Hi gmat1220, could you elaborate more about why E explains that the stores will rebound? Thanks!
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Re: Morganville's downtown  [#permalink]

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New post 15 Apr 2011, 08:29
E nearly bends them to their knees but did not blot them - the stem says "shrink substantially without collapsing" them.

Actually E leaves them a plausibility to recuperate because the damage was just to shrink the downtown shopping district stores to the critical mass which will be a meager competition to the SaveMart sharks.

However policy A is "predatory" in nature. This will help SaveMart to do a monopoly. It targets all the anchor stores which are prime movers of the market since they attract the rest of the downtown stores. If anchor stores are killed then the down store are wiped out.
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Re: Which of the following most logically completes the argument  [#permalink]

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New post 18 Mar 2012, 23:20
A is the best here as it gives a reason why the sops wouldnot rebound. E doesnt affects anything it just says they will shrink rather than collapsing, okay this doesnt provides any reason why they will not rebound.
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Re: Which of the following most logically completes the argument  [#permalink]

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New post 04 Feb 2013, 01:29
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Twenty percent of the stores in Morganville's downtown shopping district will fail within five years because they will be competing directly with the SaveMart discount department store newly opened in East Morganville. The downtown shopping district has lost business at this rate before and has always completely rebounded. Confidence that it will rebound again from the losses it is now about to suffer is ill founded, however, because ________ .

WE NEED something that explains why the downtown shopping district will not be able to rebound from the losses unlike before...

(A) the stores like to be put out of business by direct competition from SaveMart are the downtown shopping district's anchor stores, on whose ability to draw shoppers many of the other downtown stores depend.
If stores to be put out of business are the ANCHOR stores that other depends on, then it will be hard to recuperate. This is a keeper. Let's keep this for now.

(B) the bus line that has long connected the downtown area of Morganville with EastMorganville has a tradition of carrying shoppers who reside in East Morganville into downtown Morganville to shop.
What if majority of the shoppers are non-bus riders... These majority will drive the possibility of recovery for the downtown district... WE have to assume a little more to make this work... And BUS is accessible to both the downtown and the new SaveMart... competition is not helped if both shops are equally accessible...

(C) when the downtown shopping district has rebounded before, the business premises of a failed business were typically taken over by a business of same kind as had been there before
This describes what happened in the past when a business failed. This has no bearing or explanation on whether to recover in the new case at hand is possible. OUT!

(D) SaveMart's business plan for the EastMorgalvill store is based on earning low profits, if any, during the first five years of the store's existence.
This explains the cheap price of the SaveMart, as mentioned already in the argument "discount department stores".... No additional info on whether the shopping district will be able to recover... UNLIKE in A.... A so far is a contender.

(E) it is conceivable that the downtown shopping district could shrink substantially without collapsing altogether
Shrinking without collapsing altogether.. shows that there is a chance... This is opposite of what we need...

Answer: A
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Re: Twenty percent of the stores in Morganville's downtown shopping distri  [#permalink]

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New post 23 Sep 2016, 23:07
anilnandyala wrote:
Which of the following completes the argument below.

Twenty percent of the stores in Morganville's downtown shopping district will fail within give years because they will be competing directly with the Savemart discount department store newly openedd in East Morganville. The downtown shopping district jas lost business at this rate before and has always completey rebounded. Confidence that will rebound again from the losses it is now about to suffer is ill founded, however, because _____________________

a) the stores likely to be put out of business by direct competition from Savemart are the downton shopping district's anchor stores, on whose ability to draw shoppers many of the other downtown stores depend

b) the bus line that has long connected the downtown area of Morganville with East Morganville has a tradition of carrying shoppers who reside in East Morganville into downtown Morganville to shop

c) when the downtown shopping district has rebounced before, the business premises of a failed business were typically taken over by a business of the same kind as had been there before

d) Savemart's business plan for teh East Morganville store is based on earning low profits, if any, during the first 5 years of store's existence

e) it is conceivable that the downtown shopping district could shrink substantially without collapsing altogether


Though I got this one wrong (read conclusion incorrectly :-( ), gave a second thought and here is my reasoning for A to be better than C.

Conclusion: author says that confidence that stores will bounce back in business is ill founded.

Now how this conclusion can fail:
1. There may be something that is pulling consumers towards old stores.
2. Old stores can't reduce their prices further to pull customers.

Now lets begin with options:
keeping option A side

Option B: irreleavant, we are not concerned with buss line.
Option C: We are looking for a reason why business will not come back again, this goes opposite. It says new business will come up.
Option D: What happens after 5 years is out of context of this argument. Moreover this doesn't help us to know why business will not be able to come up.
Option E: Argument says 20% business will go down, it further says that in past these business bounced back. Now this phenomenon will not happen again.
Does this choice will help us to evaluate why business will not come up.
It is just says 100 shops will reduce to 50 shops now. Is this information relevant to us ?

Option A:
If shops depended on something that attracted customers towards old market, now that attraction is removed and customers will not come back.
This gives us the reason why author thinks that business will not come back.
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Re: Twenty percent of the stores in Morganville's downtown shopping distri  [#permalink]

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New post 28 Oct 2016, 10:31
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daboo343 wrote:
anilnandyala wrote:
Which of the following completes the argument below.

Twenty percent of the stores in Morganville's downtown shopping district will fail within give years because they will be competing directly with the Savemart discount department store newly openedd in East Morganville. The downtown shopping district jas lost business at this rate before and has always completey rebounded. Confidence that will rebound again from the losses it is now about to suffer is ill founded, however, because _____________________

a) the stores likely to be put out of business by direct competition from Savemart are the downton shopping district's anchor stores, on whose ability to draw shoppers many of the other downtown stores depend

b) the bus line that has long connected the downtown area of Morganville with East Morganville has a tradition of carrying shoppers who reside in East Morganville into downtown Morganville to shop

c) when the downtown shopping district has rebounced before, the business premises of a failed business were typically taken over by a business of the same kind as had been there before

d) Savemart's business plan for teh East Morganville store is based on earning low profits, if any, during the first 5 years of store's existence

e) it is conceivable that the downtown shopping district could shrink substantially without collapsing altogether


Somebody please explain this.


The Downtown Shopping District has suffered losses before but it has rebounded. However this time it will not rebound. The correct answer should indicate a difference between the past conditions and the current conditions, the difference that would cause the Downtown shopping district NOT to rebound this time. Option A states this difference:

This time the losses will be due to closing of some key stores of the Downtown Shopping district - therefore the district would not be able to come back in business. These key stores attract customers for other "non-key" stores as well. So both key-stores and non-key stores will suffer this time. Previously the non-key stores suffered, therefore there was a temporary loss of business, because customers still used to come for the key-stores, eventually giving rise to development of new non-key stores and causing a rebound in business.
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Re: Which of the following most logically completes the argument  [#permalink]

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New post 04 Apr 2017, 18:46
why C is wrong? I really cannot know which choice is better, A or C.
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Re: Which of the following most logically completes the argument  [#permalink]

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New post 05 Apr 2017, 01:48
the stores like to be put out of business by direct competition from SaveMart are the downtown shopping district's anchor stores, on whose ability to draw shoppers many of the other downtown stores depend.

This time it is different story as the stores that are likely to be put out of business by direct competitions,are the ones which attracts or draws shoppers for other stores in the downtown .So even if these stores able to rebound a bit it would have affected the bottom line of other stores in the downtown.
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Re: Which of the following most logically completes the argument  [#permalink]

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New post 05 Apr 2017, 04:06
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chesstitans wrote:
why C is wrong? I really cannot know which choice is better, A or C.


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Which of the following most logically completes the argument below?

Twenty percent of the stores in Morganville's downtown shopping district will fail within five years because they will be competing directly with the SaveMart discount department store newly opened in East Morganville. The downtown shopping district has lost business at this rate before and has always completely rebounded. Confidence that it will rebound again from the losses it is now about to suffer is ill founded, however, because ________ .

(A) the stores like to be put out of business by direct competition from SaveMart are the downtown shopping district's anchor stores, on whose ability to draw shoppers many of the other downtown stores depend.

(B) the bus line that has long connected the downtown are of Morganville with EastMorganville has a tradition of carrying shoppers who reside in EastMorganville into downtown Morganville to shop.

(C) when the downtown shopping district has rebounded before, the business premises of a failed business were typically taken over by a business of same kind as had been there before

(D) SaveMart's business plan for the EastMorgalvill store is based on earning low profits, if any, during the first five years of the store's existence.

(E) it is conceivable that the downtown shopping district could shrink substantially without collapsing altogether


The conclusion is that the downtown district will suffer because a new store has opened that will compete with the exisiting and wont bounce back.
We need a reason for the same.

Option c may or mat not be true! we cannot say for sure that this time it will happen for sure. Even if C were to be true we need a reason that supports why the businesses wont recover.
Option Cdoesnt do that.
Hence A is the best fit here. It gives a reason why the businesses wont recover.
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Re: Which of the following most logically completes the argument  [#permalink]

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New post 18 Mar 2018, 14:16
Hi - in A ...how do you know closing "anchor stores" did not happen in the previous cycle

In C we are told, it mentions what has happened in the past and we dont know anything about the current downtown ...
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Re: Which of the following most logically completes the argument  [#permalink]

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New post 05 Apr 2018, 13:05
jabhatta@umail.iu.edu wrote:
Hi - in A ...how do you know closing "anchor stores" did not happen in the previous cycle

In C we are told, it mentions what has happened in the past and we dont know anything about the current downtown ...


Because if it had happened in the past then its unlikely that business would have rebounded. C is exactly what is happening now (a store is coming in of the same type and taking over business). If the question were asking you to strengthen the argument C would be a good option

But in this case we are trying to find an answer that would make business rebounding unlikely to be true.
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Re: Which of the following most logically completes the argument &nbs [#permalink] 05 Apr 2018, 13:05
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