Statement: The city council of Brownwood City has decided to install a plant of mineral water to provide the citizens mineral water bottles at US $ 1 per bottle as against bottles costing US $ 1.5 being sold by local private players. I. All the local private companies selling bottled water in Brownwood City will have to close their operations. II. The city council of Brownwood City will have to provide for the losses from this project in its budget. III. The normal tap water supply of Brownwood City will have no takers and that will have to be discontinued.
ANone of I, II or III
BOnly II
CBoth II and III
DAll I, II and III
Answer & Solution
Correct answer: A. None of I, II or III
This is an assumption/conclusion type question based on what must follow from the statement.<br><br>I: This does not definitely follow. Private players may reduce prices, improve service, or continue operating for customers who still prefer them. So $I$ does not follow.<br><br>II: This also does not definitely follow. Selling at US $ $1$ per bottle does not by itself prove there will be a loss; the council may produce at a cost below or equal to that price, or may subsidize it, but loss is not certain. So $II$ does not follow.<br><br>III: This clearly does not follow. Mineral water being available does not mean normal tap water will have no users. So $III$ does not follow.<br><br>Thus none of the three conclusions follows. On checking the options, this matches option $A$.