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?

Question

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?

Philoid · Accepted Answer

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.