Macro economics doubt

CPT 479 views 1 replies

Problems Of Industrial Development In India

1. Under Utilization of capacity

A.indiscriminate grabbing and creation of capacites by private enterprises.

B. Deliberate under-utilisation of resources to create shortages and thereby to corner more profits.

Please explain the above points.

Why Deliberate under utilisation and how shortages occur due to under utilisation? and Point A

Replies (1)
underutilisation of resources leads to low production capacity therefore the overall market supply of goods reduces leading to excess demand situation thereby inflating prices guving more scope for profit. for a i am not very sure .


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