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Mallikarjuna’s shop is very popular and stocks all kinds of goods- from rice and wheat to processed food, imported chocolates and cheese

Economics

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Mallikarjuna’s shop is very popular and stocks all kinds of goods- from rice and wheat to processed food, imported chocolates and cheese. There is a small section which has a photocopying machine and a STD booth. MR. Mallikarjuna runs the shop with the help of his children. The family noticed that the number of shoppers varied between times and days (See table) During weekdays, MR. Mallikarjuna could manage with his children, but not in week ends. Morning Afterno on Evening Mon-Fri day 50 40 65 Sat-Sun day 165 85 30 Sunday morning buyers were ‘ value crowd’- bulk buyers, spent extra on something new and attractive but wanted a pleasant experience and were upset at the overcrowded shop. At certain times there were not many shoppers. Case study: Mallikarjuna’s Grocery Shop He employed 3 assistants during week ends, but that did not solve the problem as the shop had a small floor area and only one billing machine 1.Can you explain Mallikarjuna’s problem in terms of law of variable proportions? 2.Suggest in detail how he can improve the functioning of the shop.