Read the following descriptions and answer the questions that follow:
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.
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?
1) Sugarcane crushing machine is needed by Mishrilal to set up his jaggery manufacturing unit.
2) His family members and he himself provides the labour in this case.
3) Because of the limited production of sugarcane in his village, he is unable to raise his profit.
4) He might face losses when the price of jaggery falls.
5) Mishrilal sells his jaggery to traders in Shahpur and not in his village because he can earn more in Shahpur comparatively because of the big market of jaggery over there.
Read the following descriptions and answer the questions that follow:
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 having 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 over looking the market. High class students have started attending them in good numbers.
1) In what ways is Kareem's capital and labour different from Mishrilal’s?
2) Why didn't someone start a computer centre earlier? Discuss the possible reasons.
(view answer)