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- 1382195
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- 2019-1-12
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- 1970-1-1
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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?
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 in which costs incurred for air-conditioning in the hot summers exceed those incurred for heating in the mid winters by a wide margin.
C
The mall's occupancy rate, though relatively low, has been relatively stable for several years.
D
The mall lost tenants as a result of each of the two major rent increases that have occurred there.
E
None of the mall's established tenants is likely to need additional floor space there in the foreseeable future. |
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