A Let's Discuss
What capital did Mishrilal need to set
up his jaggery manufacturing unit?
Who provides the labour in this case?
Can you guess why Mishrilal is unable
to increase his profit?
Could you think of any reasons when
he might face a loss?
Why does Mishrilal sell his jaggery to
traders in Shahpur and not in his
village?
Answers
1. Mishrilal needed some mechanical sugarcane crushing machine, which would run on electricity to set up his jaggery manufacturing unit.
He and his family members provided labour.
In spite of working so hard, he was not able to make enough profit because the production of sugarcane in his village was limited.
2. They provide labour for farming activities. Farm labourers come either from landless families or families cultivating ...
3. (i) To set up his manufacturing unit Mishrilal needed the following capital
(a)Fixed Capital in the form of the sugarcane crushing machine. ...
(b) He has to pay for the electricity to run the machine.
(c) Since the industry is small scale, production is less and therefore, he is unable to increase his profit.
4.
▶Mishrilal sells his jaggery to traders in Shahpur and not in his village because of the demand from other town. ...
▶It must have been remunerative or profitable for him to trade his jaggery to other nearby places than his own place where he might be having competition.
Answer:
1. fixed capital
3. because he purchase the mechanical sugarcane crushing machine run on electricity