An argument states: 'Our city has a lower per capita income than the neighboring city, but it also has a lower cost of living. Therefore, residents of our city enjoy a higher quality of life overall.' The conclusion of the argument is flawed because it fails to consider that:

The correct answer to the question "An argument states: 'Our city has a lower per capita income than the neighboring city, but it also has a lower cost of living. Therefore, residents of our city enjoy a higher quality of life overall.' The conclusion of the argument is flawed because it fails to consider that:" is Option C: The difference in per capita income might be disproportionately larger than the difference in cost of living..

The other options — A) Quality of life is subjective and difficult to quantify., B) Per capita income and cost of living might not be the only factors determining quality of life., D) Neighboring cities often have different demographic profiles. — are incorrect for this GMAT Exam Prep question. As explained above: The argument assumes that the lower cost of living adequately compensates for lower income. Without comparing the magnitude of these differences, the conclusion about higher quality of life is unsubs…