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The following appeared in a letter from a part-owner of a small retail clothing chain to her business partner:
“Commercial real estate prices have been rising steadily in the Sandida Heights neighborhood for several years, while the prices in the adjacent neighborhood of Palm Grove have remained the same. It seems obvious, then, that a retail space in Sandida Heights must now be much more expensive than a similar space in Palm Grove, which was not the case several years ago. So, it appears that retail spaces in Sandida Heights are now overpriced relative to those in Palm Grove. Therefore, it would be in our financial interest to purchase a retail space in Palm Grove rather than in Sandida Heights.”
AA139
In this argument the author claims that it is better to purchase a retail space in Palm Grove than in Sandida Heights because of the financial interest. To support this prediction the author provides the evidence that estate prices have been rising in Sandida Heights whereas the prices in Palm Grove have remained the same. The author concluded that the price of a similar space must be higher in Sandida Heights than in Palm Grove. However, the argument has three major critical flaws.
Firstly, there is no evidence to show the current prices in the two neighborhoods. It is probably that Sandida Heights is a newly developed neighbourhood where the start estate price is very low. And Palm Grove is a wealthy neighbohood where rich people live. So even the prices in Sandida Heights have kept rising for several years while the prices in Palm Grove have remained stable, the estate in Sandida Heights may be still much cheaper than that in Palm Grove.
Secondly, the argument is unacceptable unless there is compelling evidence to show the connection between the estate prices and the retail estate prices. Otherwise high estate prices do not mean relatively high retail estate prices. It is probably that only living quarters in Sandida Heights are more expensive than in Palm Grove.
Finally, financial interest is related both to costs and to revenue. In that case, it is probably that a retail space in Sandida Heights can have much more customers and earn much more money than that in Palm Grove. Therefore, without a complete cost-benefit analysis, it is unfair to conclude that it would be in financial interest to purchase a retail space in Palm Grove rather than in Sandida Heights.
In conclusion, the argument is unconvincing based on the reasons listed above. To strengthen the conclusion, the author should at least give the current estate prices in the two neighborhoods and provide the evidence to show the connection between estate prices and retail estate prices. Moreover, the author should analyse the cost and future benefit of the two places.
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发表于 2011-3-23 19:37:37
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