Gowri plans to start up her own business using her savings. She wants to
produce fashion clothes for women. She is a very good clothes designer but
she does not like stitching clothes together. Two friends have offered to help
Gowri. Abha is an experienced material or fabric cutter - she can cut lengths
of material or fabric for clothes with very little wastage. Aditi is quick at
sewing fabric together.
A. Define business combine factors of production to make product
B. Identify two factors of production that Gowri will need for her new
business.
C. Outline two possible opportunity costs that Gowri may have from her
decision to start her own business. Specrisation, cess expensive
D. Explain one advantage and one disadvantage to Gowri's business of
using division of labour in making clothes.
E. Do you think that Gowri's business will be able to sell all of the clothes
that it makes?
