WEEK 3 : THEORY OF VALUE : GENERAL ECONOMICS PAPER I (INDIAN ECONOMIC SERVICES)
My apologies for being little late in posting this weekly post. I was little occupied with ECOPOINT classes, so didn’t get the time to post it here. I started with Topic 3, Theory of Value, General Economics Paper 1, Indian Economic Services. I like this topic, there is a lot of room to play and discuss so many things, but I have kept myself restricted to the syllabus defined.
In the syllabus, there is a subtopic, Pricing in different markets, now this involves detailed discussion of how optimal price is arrived in different market forms, perfect competition, we have already discussed, the thing which is left is, Imperfect market forms viz. Monopoly, Price discrimination in Monopoly, Peak Load pricing and Marginal cost Pricing and Natural Monopoly dilemma. These were the topics which I discussed this week. After explaining the model, have discussed the numerical example for each, to give a broader and better understanding of each of them.
This week, I didn’t record any IES past years papers, will be doing them in the coming week. I wanted to cover some room first and then move on to the past years. I will be doing the same topic 3, next week also. Particularly, topics related to Pricing in Bertrand Duopoly, Cournot Duopoly, Stackelberg Model, Collusion and Limit Pricing for Entry Deterrence will be covered in the coming week.This being an important topic, have questions been asked every year.
Following recordings have been made this week.
Monopoly Profit Maximisation and Lerner’s Index
Allocation of resources in Monopoly and Deadweight loss
Price Discrimination and when it is profitable and First Degree Price discrimination
Second Degree Price Discrimination (Block Pricing)
Third Degree Price Discrimination
Peak Load Pricing
Natural Monopoly and Marginal Cost Pricing
This week, I countined reading ‘ Inglorious Empire‘ by Shashi Tharoor, he made an interesting case, about how British plundered all the wealth from once, very prosperous Indian Economy. They not only attacked Indians economically, for their own selfish greed, but made laws, which were against our own customs and traditions. How discrimination was prevalent throughout the period of British Raj, in myriad forms. The author, also crushed the arguments which went in favour of British Raj, by systematically showing that even there, intentions were not to help Indians but to help themselves. I have still not finished reading this, will update more in the next post
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