The following appeared in a memorandum from the owner of Armchair Video, a chain of video rental stores. "Because of declining profits, we must reduce operating expenses at Armchair Video's ten video rental stores. Raising prices is not a good option, sin

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The following appeared in a memorandum from the owner of Armchair Video, a chain of video rental stores.

"Because of declining profits, we must reduce operating expenses at Armchair Video's ten video rental stores. Raising prices is not a good option, since we are famous for our special bargains. Instead, we should reduce our operating hours. Last month our store in downtown Marston reduced its hours by closing at 6:00 P.M. rather than 9:00 P.M. and reduced its overall inventory by no longer stocking any film released more than two years ago. Since we have received very few customer complaints about these new policies, we should now adopt them at all other Armchair Video stores as our best strategies for improving profits." - GRE Argument 99

In this memo the owner of Arrnchair Video concludes that in order to boost sagging profits Armchair's stores should eliminate evening operating hours and should stock only movies that are less than two years old. To support this conclusion the owner points out that since Armchair's downtown Marston store implemented these changes, very few customers have complained. The owner's argument relies on several unsubstantiated assumptions, and is therefore unconvincing as it stands.

In the first place, implicit in the argument is the assumption that no other means of boosting profits is available...

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