Gokhale sample paper 3 discussion

[Anjali]

Sandeep what is real balance effect ?
And why does quota increase CA ?

Try these plz !

3. The theory of price discrimination predicts that in comparison to single-price monopoly

a) output will increase, and average revenue will decrease c) output will decrease, and average revenue will decrease  b) output will increase, and average revenue will increase d) output will decrease, and average revenue will increase

4. 2. A fall in demand for the product of a monopolized industry is predicted to lead to  a) a fall in price c) a decrease in the number of firms in the long run  b) a decrease in the output of each firm d) None o

[SoniaKapoor]

Wt all topics hve u guys done in quants?

[The Villain]

@ sonia...
Number sstem
ratio and proportion
time and work
alligations
profit and loss
percentages
simple interest

[Nupur]

Neha I'm getting (c) p1=p2 for q-15 in part B. Please check!

[neha:)]

Won't he charge a higher price from the market with inelastic demand..in this case market 2 ?

[Nupur]

How are you comparing the elasticities??
If you solve using MR1=MR2 you get Q1=8Q2
Put this in P1: P1= 100-0.5*8Q2
= 100-4Q2=100-(100-P2)
This implies P1=P2
Pls check calculation, according to me there's no calculation mistake but still!!

[neha:)]

The calculation is correct, but y do we need to equate the two MR's?

[Nupur]

See Varian pg 452, this only is the optimal condition of third degree price discrimination, right?