Mr. Lalit has 5 acres of land. He has two major business alternatives-one, manufacturing apparels, jeans etc, second a famous group of hotel chains.
Through establishment of factory Mr Lalit can earn Rs. 10, 00 000 monthly and through hotels ,he can earn Rs. 15, 00 000 monthly.
(a) Why Mr Lalit is facing the problem of choice?
(b) What is the alternative he should choose and why?
(c) Explain the concept of opportunity cost through this example.
(d) State the three central problems of economy.
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Answered by
4
Answer:
Manufacturing sector is considered the backbone of development in general and economic development. (i) Manufacturing industries helps in modernising agriculture. (ii) It reduce the heavy dependence of people on agriculture income by providing them jobs. (iii) Helps in eradication of unemployment & poverty.
Answered by
1
Answer:
a) He is facing problem because if the variety of choices provided which could prove to be better for Mr.Lalit
b) He should choose earning through hotel as it provides better image and better income fir him.
c) Opportunity cost refers to the next alternative for the current income. In the above example, the opportunity cost for him is earning through hotels.
d) i) What to produce and in what quantity
ii) How to produce
iii) For whom to produce
Hope it will help you
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