Decision reasoning – municipal mineral water pricing vs. private suppliers Statement: The Deputy Mayor of city Z proposes to install a municipal mineral-water plant and supply bottles at Rs 6 per litre, versus Rs 10 per litre from local private companies. Courses of Action to evaluate: I. Local private companies will have to close their operations. II. The Corporation will have to provide for losses for this project in its budget. III. The city’s tap-water schemes will have to be stopped. Which course(s) logically follow(s)?

Difficulty: Medium

Correct Answer: None of these

Explanation:


Introduction / Context:
A municipal plan proposes cheaper bottled mineral water. We must evaluate courses of action that are logical responses rather than predictions or unnecessary consequences.



Given Data / Assumptions:

  • Municipality proposes Rs 6/L mineral water; private sellers price at Rs 10/L.
  • No data on costs, capacity, losses, or customer behavior is given.
  • Tap-water schemes are a separate civic utility function.


Concept / Approach:
In Courses of Action, accept actions that are necessary steps directly supported by the statement. Reject mere speculations about outcomes (closures, losses) and actions that are unrelated or extreme (stopping tap water).



Step-by-Step Solution:
I: “Private companies will have to close” is a conjecture, not an action the civic body should take. It is not a course of action and is not logically compelled.II: “Provide for losses in the budget” presumes the project will incur losses. The statement gives no evidence of projected loss; hence it does not follow.III: Stopping tap-water schemes is unrelated and harmful to public health. The bottled-water initiative does not logically imply discontinuing piped supply.



Verification / Alternative check:
Reasonable courses would involve feasibility studies, cost analysis, and quality control—not stated here. None of I–III necessarily follow from the statement.



Why Other Options Are Wrong:

  • Any option containing I, II, or III accepts speculation or an extreme step, which the statement does not warrant.


Common Pitfalls:
Confusing predictions or consequences with actionable, justified steps.



Final Answer:
None of these

More Questions from Course of Action

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