IIFT 2014 Question Paper Question 79

Instructions

The statement below is followed by three outcomes numbered I, II and II. An outcome is either a step of administrative decision to be undertaken for improvement, or a follow-up for further action, or natural response by stakeholders, etc. on the basis of the information provided in the statement. Everything mentioned in the statement is to be assumed to be true, on the basis of which the most logically followed course of action has to be decided.

Question 79

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.

Solution

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 the local private players are selling at US $1.5 per bottle. Statements I, II and III are the possible effects and none of them can be a course of action. The answer is option A.



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