XAT 2021 Question 86


Read the following scenario and answer the three questions that follow.

Churna is a peaceful village, surrounded by thickly forested high hills that isolate it from the rest of the world. Agriculture is the main occupation of the Churna villagers. Moreover, the forests provide seasonal fruits, tubers, medicinal herbs, and other forest produce in abundance. For all material needs not produced locally, the Churna villagers depend on Tendua, a faraway town.

Once a month, the Churna women would arduously trek with the surplus produce to Tendua. In the Tendua market, they convey the virtues of their produce through a beautiful song and dance routine. Reputed for their hard-bargaining skills, they always manage to extract a premium barter from the traders, more than fulfilling all their other material needs.

Question 86

Damdu, an ambitious trader of Tendua, wants to have exclusive access to all the surplus produce from Churna.

Which of the following offers to the Churna village will BEST help Damdu achieve her objective?


The best course of action for Damdu would be option A that is to set up a shop in Churna which will barter all the material requirements of the village. In this way the women of Churna would not sell their products in the Tendua market instead they sell them to Damdu as it would avoid transportation cost if they get all the materials for their requirement.

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