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
Answer:
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.
Answer:
1)Mishrilal required fixed capital which is the sugarcane crushing machine in his case and working capital which is the money for the ourchase of sugarcane for crushing and for the purpose of paying electricity bills for crushing the sugarcane.
2)Mishrilal family and he himself will be providing the labour or he may put to work landless labourers
3)Mishrilal is unable to increase his profit because the production of sugarcane in his village is limited.
4)He might face a loss when the price of jaggery will fall.
5)Mishrilal sells his jaggery to traders in Shahpur and not in his village because the market for jaggery in Shahpur is big in comparison to his village, where he can earn more profit. It is well connected with neighbouring villages and towns. Raiganj, a big village, is 13 Kms. from Palampur.