Peter Pan Ltd. manufactures bread for ₹10/loaf, and they have a nice sales market. They are now planning to expand and open another plant in Jaipur, for which they require additional capital. So, their team hiked the prices to ₹12/loaf. The consumers noticed this change, but they were okay with the ₹2 hike.

Who benefitted from this step?

The consumers will get better quality products now.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Peter Pan Ltd. will benefit as they will have more money.

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Foreign economies will benefit.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Peter Pan's competitors will benefit.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Peter Pan Ltd. will benefit as they will have more money.
A ₹2 inflation did not pinch anyone, as it did not affect anyone majorly. So, inflation from the producer's point of view is beneficial. With the increased production, new job opportunities would be created. This in turn would increase the treasury of the government through taxes highlighting that inflation is beneficial in some cases. Controlled inflation helps in expanding production and promoting economic growth in the country.

Suggest Corrections

Similar questions

Q. Pinnacle Ltd deals in the sale of stationary and office furniture. They source the finished products from reputed brands who give them four to six months credit. Seeing the demand for electronic items,they are also planning to market these items by opening outlets throughout India. For this, they have decided to join hands with a Japanese electronic goods manufacturer.
Identify and state any two factors that would affect the fixed capital requirement of Pinnacle Ltd as discussed above.

Q. Milk World Ltd is a government-owned milk distribution centre. Earlier they used to distribute milk in bottles as shown in the figure for Rs 8 per bottle. Now they have decided to reduce the price per bottle by 50 paise by reducing the size of the bottle. However, they do not want their old customers to notice this change in the size of the bottle so they plan to reduce the circumference of the opening of the bottle without changing the height of the bottle. What is the new circumference of the opening?

Q. Milk World Ltd. is a government-owned milk distribution center. Earlier they used to distribute milk in bottles as shown in the figure for Rs. 8 per bottle. Now they have decided to reduce the price per bottle by 50 paise, by reducing the size of the bottle, However, they do not want their old customers to notice this change in the size of the bottle, so they plan to reduce the circumference of the opening of the bottle without changing the height of the bottle. What is the new circumference of the opening?

Q. Sita, Gita, and Charu are excellent embroiderers and have been sewing for the past 10 years. They now want to expand their skill and generate employment in the village where they live.
They have savings but require a loan. From where should they take a loan so that they get it at the lowest interest rate possible?

The top management of Phospher Ltd. is engaged in organisation planning but they do not involve middle and supervisory level of management. These two levels of management are neither allowed to deviate from their plans nor are they permitted to act on their own. They keep thinking along the same lines as others so that nothing new or innovative gets added to the process.

(i) Which limitation of planning is reflected in above case?

(ii) What is the meaning of this limitation in the context of the case study?

(iii) What remedial step will Phospher Ltd., take to overcome this limitation?

Join BYJU'S Learning Program