1. A new supervisor had joined a government department where both Naresh and Srikumar were bidding for work. During the bidding process for a particular project, in an open meeting with all contractors and officers from the department, he produced a document which had the rates at which Naresh had worked for private clients for similar building related work. He accused Naresh and Srikumar of over-pricing for government work and threatened to disqualify them from the bidding process, if the rates are not brought down. Faced with that situation, Naresh gave a written reply that “I use materials of inferior quality for private work, and that is the reason for price difference”. Srikumar supported Naresh in the meeting by saying that he had seen Naresh’s work and he agreed. In this situation, it can be concluded that:
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