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Gaurav Seth 5 years, 7 months ago
(i) To set up his manufacturing unit Mishrilal needed the following capital (a)Fixed Capital in the form of the sugarcane crushing machine. (b) 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. (ii) The labour is provided by him and his family. Otherwise he will employ landless labourers. (iii)(a) Mishrilal has set up a small scale unit. (b) The farm holdings in the village are very small of about 2 hectares in size and production of sugarcane is low as more area is under wheat, so raw material is also less. (c) He has to pay for the electricity to run the machine. (d) Since the industry is small scale, production is less and therefore, he is unable to increase his profit. (iv) Conditions under which he may face a toss can be any of the following
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