Question

Rohan owns a Furniture making factory in the outskirts of Palampur.
a) What will be the working and fixed capital used by Rohan?
b) What kind of labour will Rohan employ and why?
c) Which will be the most important factor of production used by Rohan?​

Answer 1

Answer:

Explanation:

A)

His working capital:wood,money in hand!

His fixed capital:machines such as computers etc.,labour,tools

B)

Rohan will employ workers or labours who could do manual work.i.e those who can cut wood,change its shape,transform it from a piece of wood to a finished furniture.they need not to be very educated.

C)

The most important factor used by him could be the human capital.

This is because with knowledge and education they are able to put together labour,physical capital and produce an output...

Hope it helps.....