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

Which of the following, if true, most seriously weakens the argument?


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.

The mall is located in a geographic area in which costs incurred for air-conditioning in the hot summers exceed those incurred for heating in the mid winters by a wide margin.

The mall's occupancy rate, though relatively low, has been relatively stable for several years.

The mall lost tenants as a result of each of the two major rent increases that have occurred there.

None of the mall's established tenants is likely to need additional floor space there in the foreseeable future.

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Prep2012-CR

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