question_answer

   (a) What capital did Mishrilal need to set-up his jiggery manufacturing unit?                            (b) Who provides the labour in this case?  (c) Can you guess why Mishrilal is unable to increase his profit?  (d) Could you think of any reasons when he might face a loss?  (e) Why does Mishrilal sells his jaggery to traders in Shahpur and not in his village?

Answer:

                  To set-up his manufacturing unit Mishrilal  needed the following capital (i) Fixed Capital in the form of the sugarcane crushing machine. (ii) Working Capital in the form of money for buying sugarcane from other farmers for crushing and for paying the electricity bill of running the crushing machine.