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705-805 (Hard)|   Weaken|                              
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With seventeen casinos, Moneyland operates the most casinos in a certain state. Although intent on expanding, it was outmaneuvered by Apex Casinos in negotiations to acquire the Eldorado chain. To complete its acquisition of Eldorado, Apex must sell five casinos to comply with a state law forbidding any owner to operate more than one casino per county. Since Apex will still be left operating twenty casinos in the state, it will then have the most casinos in the state.

The conclusion of the argument is the following:

it (Apex) will then have the most casinos in the state

The support for the conclusion is the following:

With seventeen casinos, Moneyland operates the most casinos in a certain state.

and

Apex will still be left operating twenty casinos in the state

We see that the reasoning of the argument is the following: Since Moneyland currently has seventeen casinos and since, once the acquisition is complete, Apex will have twenty casinos, Apex will have the most casinos in the state.

Which of the following, if true, most seriously undermines the prediction?

This is a Weaken question, and the correct answer will cast doubt on the conclusion.

A) Apex, Eldorado, and Moneyland are the only organizations licensed to operate casinos in the state.

This choice is interesting.

After all, if Apex is acquiring the Eldorado chain and must sell five casinos and only Apex, Eldorado, and Moneyland are licensed to operate casinos in the state, then it appears that only Moneyland is able to buy any of the five casinos that Apex plans to sell.

In that case, it seems likely that, when the deal is complete, Moneyland will have more than seventeen casinos and may even have twenty-two.

So, this choice casts doubt on the conclusion by indicating that, even though, with twenty casinos, Apex will have more than Moneyland has now, it may not be true that Apex will have more casinos than Moneyland once the deal is complete.

Keep.

B) The majority of Eldorado's casinos in the state will need extensive renovations if they are to continue to operate profitably.

Regardless of whether casinos need renovations, they still are casinos.

So, by acquiring Eldorado's casinos, Apex could end up with the most casinos in the state even if some need renovations.

Eliminate.

C) Some of the state's counties do not permit casinos.

Regardless of whether some counties do not permit casinos, once the acquisition is complete, Apex will have twenty casinos.

So, since Moneyland has seventeen, Apex could still have the most casinos.

Eliminate.

D) Moneyland already operates casinos in the majority of the state's counties.

Regardless of how many counties Moneyland operates casinos in, once the acquisition is complete, Apex will have twenty casinos whereas Moneyland has seventeen.

So, even if this choice is true, it appears that Apex will have the most casinos.

Eliminate.

E) Apex will use funds it obtains from the sale of the five casinos to help fund its acquisition of the Eldorado chain.­

Regardless of how Apex will use the funds from the sale of the five casinos, once the acquisition is complete, Apex will have twenty casinos whereas Moneyland has seventeen.

So, even if this choice is true, it appears that Apex will have the most casinos.

Eliminate.

Correct answer: A
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Not gonna lie, this question is very very well written. Kudos to the GMAC. Have to admit that in choice A I totally missed the point that Moneyland is the only one who will/can buy from Apex. Wish one day I could be capable of writing this kind of question. Such a brain teaser.
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This is such an aamazing question, kudos gmac
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I didn't realize that Moneyland will snap up those 5 casinos that Apex will sell. I elimated all the answers choices for this question and couldn't find an answer.

It didn't click for me that if they sold it, that someone else will buy. Tricky one!
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How can we assume that the 5 casinos that Moneyland buys from Apex, won't conflict with the law that an owner can't operate more than 1 casino per county?
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With seventeen casinos, Moneyland operates the most casinos in a certain state. Although intent on expanding, it was outmaneuvered by Apex Casinos in negotiations to acquire the Eldorado chain. To complete its acquisition of Eldorado, Apex must sell five casinos to comply with a state law forbidding any owner to operate more than one casino per county. Since Apex will still be left operating twenty casinos in the state, it will then have the most casinos in the state.

Which of the following, if true, most seriously undermines the prediction?


The prediction is that Apex will have the most casinos because, after selling five, it will still have twenty. But this ignores who buys the five casinos. If Moneyland buys them, then Moneyland would go from seventeen casinos to twenty-two, so Apex would not have the most.

A) Apex, Eldorado, and Moneyland are the only organizations licensed to operate casinos in the state.

Correct. If only these organizations are licensed, then after Apex acquires Eldorado, the only remaining licensed buyer for the five casinos is likely Moneyland. If Moneyland gets those five casinos, it would have 17 + 5 = 22 casinos, more than Apex’s 20. That directly undermines the prediction.

B) The majority of Eldorado's casinos in the state will need extensive renovations if they are to continue to operate profitably.

Wrong. Profitability does not affect the number of casinos Apex will operate.

C) Some of the state's counties do not permit casinos.

Wrong. This does not show that Apex will have fewer than twenty casinos or that another company will have more.

D) Moneyland already operates casinos in the majority of the state's counties.

Wrong. This may limit where Moneyland can expand, but it does not show that Moneyland will end up with more casinos than Apex.

E) Apex will use funds it obtains from the sale of the five casinos to help fund its acquisition of the Eldorado chain.

Wrong. This explains how Apex may finance the acquisition, but it does not undermine the claim that Apex will have the most casinos.

Answer: (A)
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