Question

A. Read the story of Mishrilal and Kareen and answer the following questions:
Mishrilal has purchased a mechanical sugarcane crushing machine run on electricity and has set it up on his field. Sugarcane crushing was earlier done with the help of bullocks, but people prefer to do it by machines these days. Mishrilal also buys sugarcane from other farmers and processes it into jaggery. The jaggery is then sold to traders at Shahpur. In the process, Mishrilal makes a small profit.
Kareem has opened a computer class centre in the village. In recent years a large number of students have been attending college in Shahpur town. Kareem found that a number of students from the village are also attending computer classes in the town. There were two women in the village who had a degree in computer applications. He decided to employ them. He bought computers and set up the classes in the front room of their house overlooking the market. High school students have started attending them in good numbers.
1. What capital did Mishrilal need to set up his jaggery manufacturing unit?
2. Who provides the labour in this case?
3. Can you guess why Mishrilal is unable to increase his profit?
4. Could you think of any reasons when he might face a loss?
5. Why does Mishrilal sell his jaggery to traders in Shahpur and not in his village?

Answer 1

Answers to the story of Mishrilal and Kareen

Explanation:

1. Mishrilal need to set up his jaggery manufacturing unit with fixed capital and working capital.

2. The labour may be his own family members or umemployed workers in his village.

3. Mishrilal is unable to increase his profit because of small scale production and low availability of raw materials.

4. He might face loss if the demand of Jaggery goes down in Shahpur and if the production of sugarcane is less.

5. Mishrilal sell his jaggery to traders in Shahpur and not in his village because in his village there is not much demand for jaggery.