Macro economics doubt

Cpprasad (CA Student) (125 Points)

23 January 2014  

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