From around the globe, it's theCUBE with digital coverage of AWS re-invent 2020, sponsored by Intel, AWS, and our community partners. Welcome to theCUBE's coverage of AWS re-invent 2020, the digital version. I'm Lisa Martin, and I have a couple of CUBE alumni joining me from Veeam. We've got Danny Allen, it's CTO and SVP of Product Strategy, and Dave Russell, VP of Enterprise Strategy is here as well. Danny and Dave, welcome back to theCUBE. Hi, Lisa, great to be here. Hey, Lisa, great to be here. Love talking with this audience. And thankfully, because of technologies like this in the Zoom, we're still able to engage with that audience, even though we would all be gearing up to be spending five days in Vegas with what, 47,000 of our closest friends across, and walking a lot. But I wanted to Danny start with you, you guys had Veeam on virtually this summer. That's an event known for its energy. Talk to me about some of the things that you guys announced there, and how are your customers doing with this rapid change to work from home and this massive amount of uncertainty? Well, certainly no one would have predicted this the beginning of the year. There's been such transformation. There was a statement made earlier this year that we've gone through two years of transformation in just two months. And I would say that is definitely true if you look both internally at Veeam, our workforce, we have 4,400 employees, all of a sudden 3,000 of them that had been going into the office or working from home. And that is true of our customer base as well. There's a lot of remote employment, remote working. And so that has, you would think it would have impact on the digital systems, but what it's done is it's accelerated the transformation that organizations are going through. And that's been good in a number of different aspects. One, certainly cloud, adoption of clouds picked up, things like Microsoft Teams and collaboration software has certainly picked up. So it's certainly been a challenging year on many fronts, but on the other hand, it's also been very beneficial for us as well. Yeah, I've talked to so many folks in the last few months. There's silver linings everywhere. There's opportunity everywhere, but give our audience, Danny, an overview of who Veeam is, what you do and how you help customers secure their data. Sure, so Veeam has been in the backup business is what I'll say. We started right around when virtualization was taking off little before AWS and EC2, last computing services, and we would do backup of virtual environments. And over the last decade, we have grown into a $1 billion company doing backup solutions that enable cloud data management. What I mean by that is we do backup of all kinds of different infrastructures from virtual to cloud-based to SaaS-based to physical systems, you name it. And then when we ingest that data, what we do is we begin to manage it. So an example of this is we have 400,000 customers that are doing backup on premises. And one of the things that we've seen this year is this massive push of that backup data into S3, into the public cloud. And so this is something that we help our customers with as they go through this transformation. And so you've got a theme for AWS cloud-mated solution. Talk to me a little bit about that and how does that allow businesses to get that centralized view of virtual physical SaaS applications? Yeah, I think it all starts with architecture. And fundamentally, Veeam's architecture is based upon having a portable data format that's self-describing. So what does that mean? It means it reduces the friction from moving data that might have been born on premises to later be instantiated in, say the AWS cloud, or you can also imagine now new workloads being born in the cloud, especially towards the middle and end of this year. A lot of us, we couldn't get into our data center. We had to do everything remotely. So we had to try to keep those lights on operationally, but we also had to begin to lift and shift and accelerate. Your point about silver linings, if there is a silver lining, the very prepared really benefited. And I think those that were maybe a little more laggards, they caught up pretty quickly. Well, that's good to hear. Dave, sticking with you, I'd love to get your perspectives on IT challenges in the last nine months in particular, what things have changed, what remains the same and where is backup as a priority for the IT folks and really the business folks too? Yeah, I almost want to start with that last piece, where is backup? So backup obviously well understood as a concept. It's well funded. I mean, almost everybody in their right mind has a backup product, especially for critical data. But yet that all sounds very much the same. What's very, very different though, where are those workloads? Where do they need to be going forward? What are the service level agreements, meaning that access time is required for those workloads? And while we're arguably transitioning from certain types of applications to new applications, the vast majority of us are dead in the middle of that. So we've got to be able to embrace the new while also anchoring back to the past. Yeah, not so easily said and done professionally or personally.  What's the change been like? And from a business perspective, are you having more conversations at that business level as the end of the day, if you can't recover the data? That's the whole point, right? Yeah, it is. I would say the conversations really have four segments to them. The first is, it always starts with the pandemic and the impact of the pandemic on the business. The second from there is it talks about resource. We talk about resource management. And that's resource management both from a cost perspective, customers trying to shift the costs from CAPEX models, typically on premises into OPEX cloud consumption models and also resource management as well. There's the shift from customers who are used to doing business one way and they're trying to shift the resources to make it effective in a new and better way. I'd say the third conversation actually pivots from there to things like security and governance. One of the interesting things this year we've seen a lot of is ransomware and malware and attacks, especially because the attack surface has increased with people working from home. There is more opportunity for organizations to be challenged. And then lastly, it always pivots where it ends up is digital transformation. How do I get from where I used to be to where I want to be? Yeah, the ransomware increase has been quite substantial. I've seen a number of big, of course you never want to be the brand. Garmin was head, Carnival Cruise Line, I think Canon cameras as well. And you're talking about, you're right, the attack surface is expanding with unprotected cloud databases. I think that was the Facebook, TikTok, Instagram hack. And also it's getting more personal, which you have more people from home, more distractions and that's a big challenge that organizations need to be prepared for. Because really it's not a matter of are we going to get ahead, but it's when and we need to make sure that we have that resiliency. Dave, talk to us about how theme enables customers to have that resiliency. Yeah, it's a multi-layered approach, like any good defensive mechanism, it's not one thing. It's trying to do all of the right things in advance, meaning passwords and perimeter security and ideally virtual private networks. But to your point, some of those things can fail, especially as we're all working remotely and there's more dependence on now suddenly, perhaps not so IT sophisticated people to now do the right things on a daily basis. And to your point about how personal it's getting, if we're all getting emails about click on this for helpful information on the pandemic, the likelihood of this goes up. So in addition to trying to do good things ahead of time, we've got some early warning detection capabilities where we can alert that something looks suspicious or anomalous and bears out better investigation to confirm that. But ultimately the couple of things that we do that are very interesting and unique to BMR, we can lock down copy of the backup data so that even internal employees, even someone at Amazon can't go if it's marked immutable and destroy it, remove it, alter it in any way before it's due to be modified or deleted or raced in any way. But one of the ones I'm most excited about is we can actually recover from an old backup and now we introduce updated virus signatures to ensure we don't reintroduce day zero threats in the production environments. Is that across all workloads, physical, virtual, things like Microsoft 365 Slack talked about those collaboration tools, that immutability? So immutability, we're expanding out into multiple platforms. Today we've got it on on-premises object storage through a variety of different partners, actually a couple dozen different partners now. And we have something very unique with AWS S3 object lock that we can really lock down that data and ensure that can't be compromised. That's excellent. Danny, over to you. In terms of cloud adoption, you've both talked about this acceleration of digital business transformation that we've all seen. I think everyone has whiplash from that and that this adoption of cloud has increased. We've seen a lot of that. Is being a facilitator, like are you working with clients who are sort of maybe Dave at that point you talked about in the beginning, like kind of on that brink in the beginning and we've got to transform, we've got to go to the cloud. How do you kind of help maybe facilitate their adoption of public health services like AWS with the technologies that the offers? Yeah, I'd say it's really two things. Everyone wants to say, hey, we're disrupting the market. We're changing everything about the world around us. You should come with us. Meme actually has a very different approach to this. One is we provide stability through the disruption around you. So as your business is changing and evolving and you're going through digital transformation, we can give you the stability through that and not only the stability through that change but we can help in that change. And what I mean by that is if you have a customer who's been on-premises and running the workloads on-premises for a long while and maybe they've been sending their backups into S3 and flagging that imutability but maybe now they want to actually migrate the workloads into EC2, we can do that. It's a three-step, three clicks in a workflow to hit a button and say, send it up into EC2. And then once it's in AWS, we can protect the workload when it's there. So we don't just give the stability in this changing environment around us but we actually help customers go through that transformation and help them move the workloads to the most appropriate business location for them. And how does that, Denny, continuing with you from a cost optimization perspective? Of course, we always talk about cost as a factor when I'm going to the cloud. How does that a facilitator, like being able to move some of those workloads like EC2 that you talked about, is that a facilitator of cost optimization, lower TCO? I would imagine at some point, yes. Yes, it is. So I have this saying the cloud is not a charity, right? They layer in margin and often people don't understand necessarily what it's going to cost them. So one of the fundamental things that we've had in being back up for AWS since the very beginning, since version one is we give cost forecasting. And it's not just a rudimentary cost forecasting. We look at the storage, we look at the compute, we look at the networking, we look at all of the different factors that go into a policy and we will tell them in advance what it's going to cost. That way you don't end up in a position where you're paying a lot more than you expected to pay. And so giving that transparency, giving the visibility into what the costs of the cloud migration and adoption are going to be is a critical motivator for customers actually to use our software. Awesome. And Dave, I'm curious if we look at some of the things trends-wise that have gone on, what are you seeing IT folks in terms of work from home, the remote workers? I imagine they're getting their hands on this, but do you expect that a good amount of certain types of folks from industries won't go back into the office because IT's realizing like more cost optimizations or hey, we don't need to be on site because we can leverage cloud capabilities? Yeah, I think it works actually in both directions, Lisa. I think we'll see employees continue to work remotely. So the notion of skyscrapers being filled with tens of thousands of people, knowledge workers as they were once called back in the day, that may not come to pass at least anytime soon, but conversely to your point, everybody getting back into the data center, from a business perspective, the vast majorities of CIOs, they don't want to be in the real estate business. They don't want to be in the brick and mortar and the power of cooling the facilities business. So that was a trend that was already directionally happening. And just as an accelerant, I think 2020 and probably 2021, at least the first half just continues that trend. Yeah, Silicon Valley is a bit lonely. The freeways are certainly empty here, which is one thing, but it is, it's one of those things that you think you can be, and now granted folks that worked from home, regardless of the function that they were in before, it's not the same. I think we all know that it's not the same working from home during a pandemic when there's just so much more going on, but at the same time, I think businesses are realizing where they can actually get more cost optimization since your point, not wanting to manage real estate, big data centers, things like that, that may be a positive spin on what this situation has demonstrated. Danny, last question to you. I always loved it to hear about successful customers. Talk to me about one of your favorite reference customers that really just articulates Veeam's value, especially in this time of helping customers with so many pivots. Well, the whole concept of digital transformation is clearly coming to the forefront with the pandemic. And so one of my favorite customers, for example, it ducks unlimited up in Canada. They have IoT sensors where they're collecting data about climate information, they put it into a repository and they keep it for 60 years. Why 60 years? Because who knows over the next 60 years when these sensors and the data that they're collecting may be able to solve problems like climate change. But if you look at it a broader sense, take that same concept of collection of data, I think we're in a fantastic period right now where things like telemedicine in the past, it was kind of in a slow roll, remote education and training was on kind of a slow roll, climate change, slow roll. But now the pandemic is accelerating a lot of that. Another customer, royal.shell, for example, traditionally in the oil and petrochemical industry, they're now taking the data that they have, they're going through this transformation faster than ever before and saying, how do I move to sustainable energy? And so a lot of people look at 2020 and say, I want this year or this is not the transformation I want. I actually take the reverse of that. The customers that we have right now are taking the data sets that they have and they're actually optimizing for a more sustainable future, a better future for us and for our children. And I think that's a fantastic thing and Veeam obviously helps in that transformation. That's excellent. And I agree with you, Dianne. Necessity is the mother of invention. And sometimes when all of these challenges are exposed, it's hard right away to see, what are the positive, right? What are the opportunities? But from business perspective, as you guys were talking about in the beginning of our statement, in the beginning with keeping the lights on, well now we've got to get from keeping the lights on to surviving, to pivoting well, to thriving. So that hopefully 2021 is as good as everybody hopes it's going to be, right Dave? Yeah, no, absolutely. It's all data driven and you're right. We have to move from keep the lights up and going to operational aspect to growing the business in new ways and ideally transforming the business in new ways. And you can see we hit on digital transformation a number of times. Why? Because it's data driven. Why do we intercept that with being? Well, because if it's important to you, it's probably backed up and held for long-term safekeeping. So we want to be able to better leverage the data. Like Danny mentioned with Ducks Unlimited. And of course, as we know, data volumes are only growing. So next time you're on Dave, you have to play us out with one of your guitars. Deal? Definitely, definitely well. Excellent. For Dave Russell and Danny Allen, I'm Lisa Martin. Guys, thank you so much for joining. You're watching theCUBE.


Good evening aspirants, welcome to daily news analysis by Shankar Iyer's Academy. Today's date is 25th August 2023. Displayed here are the list of topics we are going to see today. Now before we get into the discussion, I have an important announcement. Shankar Iyer's Academy's pre-storming test series is about to begin on 11th September. The first test will happen on 18th September. The other details regarding the test series are given here you can go through it. Now let us get into the discussion. Take a look at this news. The Defence Acquisition Council had a meeting led by Defence Minister Rajnath Singh. The Council agreed to buy special equipment to helicopters, self-operating systems for army units, new light machine guns and bridge-laying tanks. They are also buying weapons for Navy helicopters called MH-60, also called as Seahawk helicopters. Note that the Navy is already getting 24 Seahawk helicopters from USA. In addition to this, rugged laptops and tablets for army are also been approved. Remember, all these procurements will be sourced indigenously. So these are the decisions taken in Defence Acquisition Council meeting held recently. So in our discussion, let us know about Defence Acquisition Council in detail and some important points mentioned in the news article. The Defence Acquisition Council is the highest decision-making body for acquiring Defence equipment for Indian armed forces. It was set up in 2001 after Kargil war. The DIC is like a special team for buying things related to defence like weapons and equipments. It meets under the leadership of Defence Minister and it has many members including Chiefs of Army, Navy and Air Force. The DIC has authority to approve acquisitions up to 300 crores. For acquisitions above 300 crores, the DIC must get approval from Cabinet Committee on Security. So the DIC meets regularly to consider proposals for acquisition of Defence equipment and services. Currently DIC has granted AON acceptance of necessity to enhance the efficiency of Indian Air Force. Here, the acceptance of necessity means government has accepted the need for equipment and this is the first step in procurement process. Now we shall see what are the equipments approved by DIC. Firstly, India is going to buy electronic warfare suit for MI-17 helicopters. Here the electronic warfare suit is a special set of tools that will help in dealing with electronic stuff like signals and communications. For example, it can help us to listen to the enemy signals or disrupt their communication system. So this is the meaning of electronic warfare suit. Then DIC also approved the buying of new light machine guns for Army. This will enhance the fighting capabilities of our Army. Next, we are also going to buy bridge laying tanks. The bridge laying tank is a special type of tank used by military to lay down a bridge quickly. The bridge helps other vehicles like trucks and tanks to cross the river. So these are the things which were approved by DIC recently. So this is all about this discussion. Let us move to the next topic. Look at this editorial article. This editorial is written by Mr. Mahesh Sachdev. Mr. Mahesh Sachdev is a retired Indian Forest Service Officer who served as Ambassador to Algeria and High Commissioner to Nigeria. So the points mentioned in this editorial are very relevant to our examination. In this editorial, the author talks about challenges in Africa like bad governance, terrorism, tribal conflicts, and overall decrease in international support. The author also highlights the strong relationship between India and Africa. So this is the overall essence of the article. So in this discussion, we will see all the points mentioned in this editorial in detail. Before that, I have highlighted the syllabus for your reference. Africa is a vast and diverse continent. It is second largest continent in the world and it has over 1.4 billion people. It has diverse culture, languages and ethnicities. In addition to this, the continent is gifted with a lot of natural resources. So there is a huge potential for growth and advancement. Despite all these advantages, the continent of Africa is still largely poor and underdeveloped. Now what is the reason for this? What are the challenges that Africa is facing? First, let us see the political challenges. The continent is highly misgoverned. Now why is misgovernance is prevalent in most of the African countries? The first reason is massive corruption in all political institutions. The second reason is Africa's tribal diversity. The continent is inhabited by a lot of tribes. So these tribes have a lot of rivalry among them. Also due to nepotism, most of the political institutions are dominated by ruling tribes, thereby eliminating the representation of other tribes. So this resulted in social tensions in many African countries. Then recently there has been increased incidence of Islamic terror. The last and most important political challenge is the rise of dictatorship in Africa. For example in countries like Egypt, Burkina Faso, Mali and Niger, the military generals have overthrew the democratically elected leaders. Now why is this happening? Or why is there a rise in military dictatorship in Africa? According to the author of the editorial Global powers like USA, Russia and France have intervened in Africa to keep dictators in power. These developed countries support the dictators to protect their own economic interest, such as uranium in Niger, gold in Central African Republic and oil in Libya. So these are the political challenges faced by Africa. Now coming to the economic challenges. The first issue is high food inflation. The high food inflation is mainly caused by climate change. Climate change has affected agricultural productivity. The drop in production has pushed up the food prices. Also due to high food inflation, the purchasing power of common people declined. This has resulted in overall decline in standard of living. Then there is an issue of unplanned urbanization. This has resulted in growth of slums around cities with no access to basic amenities. Then there is an issue of high unemployment. Unemployed youths are more likely to get into protest, political conflicts and are dragged into terrorist groups. So these are the economic challenges faced by Africa. The last major challenges decline in international support. See, Africa for past few decades have got international support to solve its problems. But recently this support is on decline due to various reasons. For example, let us take China. China has been Africa's largest trading partner and investor. But recently due to slowdown in Chinese economy, the Africa-China trade has come down. In addition to this, Belt and Road Initiative of China has pushed many African countries into unsustainable depths. Due to this, Chinese support for Africa has been slowly declining. In the case of eastern countries like US, UK, France, their economic turn-down has reduced their support to Africa. Finally, let us take up Russia. Russia used the Wagner Group to provide military support in Africa. But with the death of Wagner's chief, how Russia will approach Africa in the future is unclear. See, these are the important challenges that Africa is witnessing right now. Now, how can these challenges be addressed? Here the key lies with India. India can leverage its position to help Africa in its growth. To understand this, first we must know about India-Africa relations. Historically, India and African countries share a history of colonial oppression and struggle for independence. This historical connection has led to a mutual understanding between India and African countries. Here, Mahatma Gandhi's movement against apartheid in South Africa can be highlighted. Economically also, India and Africa are well connected and they engage in trade and investment across various sectors. India imports raw materials like minerals and oil from Africa and exports goods like pharmaceuticals, machinery, and textiles. See, India-Africa trade reached 98 billion in 2022. Also note that India is the fifth largest investor in Africa. India has also been using its soft power in Africa through various capacity-building activities. India has extended over 12.37 billion in concessional loans to African countries. India has also completed 197 projects and has provided 42,000 scholarships since 2015. Culturally also, both India and Africa are connected through its diaspora. Currently, around 3 million people of Indian origin are living in Africa. Lastly, to ensure regional stability and security in Africa, India has been contributing to United Nations peacekeeping missions in Africa. So, these are some of the highlights of India-Africa relationship. Now, how can India help Africa? Firstly, India can provide a voice for African nations in multilateral forums like G20. Currently, only African nation to be represented in G20 is South Africa. This clearly shows that African nations lack proper representation in multilateral forums. With India hosting the G20 summit this year, India can work towards providing full membership to African Union at G20. This will increase a representation of African countries. And this in turn will address the decreasing international support in Africa. Secondly, India can help Africa to build strong sociopolitical institutions. Here, sociopolitical institutions are structures within the society that play significant role in shaping both social and political aspects of the society. For example, an independent judiciary is a strong sociopolitical institution. So, India can help Africa to create strong sociopolitical institutions like independent judiciary, stable electoral systems and inclusive constitution. These institutions will contribute to the overall stability and functioning of African nations by providing a framework for addressing social issues and resolving conflicts. Then, India can share its local innovation to address challenges in Africa. See, almost all African countries are developing countries like India. So, they must go through similar problems like us. Recently, Indian innovations like Jam Trinity, Direct Benefit Transfer, Unified Payments Interface and aspirational district program have successfully addressed various challenges in India. These innovations can be shared with African countries. Lastly, India must engage with Africa in more participatory way. Until now, countries like US, UK, France, China and Russia have engaged with Africa for their selfish economic gains. India should not replicate this. By engaging in a participatory way, India can help Africa realize its true potential. So, this is all regarding this discussion. Now, let us move to the next topic. Take a look at this article. Yesterday, our Prime Minister Narendra Modi has talked about fairness in e-commerce between big and small industries. He wanted to connect the small businesses with the world supply systems. He also asked the global leaders to focus on the small and medium-sized industries, because they provide jobs for most people and contribute a lot to the world's economy. Mr. Modi said that supporting MSME industries helps the whole society and India has been working on this as a G20 president. So, in this news article discussion, let us know about the importance of MSMEs and some steps taken by the government to develop MSMEs. MSME means micro, small and medium enterprises. They are industries that are involved in protection, manufacturing and processing of goods and commodities. The concept of MSME was first introduced by the government of India in Micro, Small and Medium Enterprises Development Act 2006. So, the MSME industries are regulated by this Act only. These industries are managed by Ministry of MSME. So, this is the basic information about MSME. Now, we shall see the importance of MSME in India. First is, they contribute to the GDP growth. MSME sector contributes around 33% of India's GDP. They are also a major source of exports and has contributed 42.6% share in India's exports. The next important significance is job creation. MSMEs are second largest job creators in India after agriculture. About 40% of India's workforce is present in MSME sector. Next important significance is inclusive growth. MSMEs promote inclusive growth by providing employment opportunities in rural areas, especially to the people belonging to weaker sections of society. For example, cottage industries, caddy and village industries require low per capita investment and they employ a large number of women in rural areas. Also note that MSME sector is resilient to global economic shocks. This is because the sector is made up of large number of small independent businesses and these businesses are able to adapt to changing market conditions more easily than larger businesses. Ultimately, MSMEs can play a significant role in creating inclusive and sustainable society. They encourage balanced regional development, gender equity and financial inclusion in rural areas. So, the MSME sector is often referred as backbone of Indian economy. This is because it plays a vital role in supporting the growth of other sectors such as agriculture, manufacturing and services sector. So, this is about the significance of MSME sector. Now, let us see some important initiatives taken by government to promote the MSME sector. First is Prime Minister's Employment Generation Program. This scheme is implemented by Caddy Village Industries Commission under Ministry of MSME and this scheme aims to generate employment opportunities in rural and urban areas. Second is Credit Linked Capital Subsidy Scheme. It provides financial assistance to micro, small and medium enterprises for the purpose of technological upgradation. Under the scheme, MSMEs can get a capital subsidy of up to 15% for establishing new plant or equipment that is used for technology upgradation. Next important initiative is Ramp Scheme. Raising and Accelerating MSME Performance. So, this scheme was launched in 2022 and it helps in promoting the green technologies in MSME sector. It also provides the ease of doing business for MSME industries. Another important step taken to improve the MSME sector is Mudra Loan Scheme. It was launched in 2015 and it provides loan of up to 10 lakhs to MSME industries. Note that Mudra Scheme has three types of loans. Tarun, where the loan up to 10 lakhs is given. Kishore, the loan is up to 5 lakhs and Shishu, where the loan is up to 50,000. So, these are the three types of loans under Mudra Scheme. So, these are the important measures taken by the government to promote MSME sector. So, in this discussion we have seen basics about MSME sector, significance of MSME to India and some initiatives taken by government to develop MSME sector. So, this is all about this discussion. Let us move to the next topic. Look at this news article. Tamil Nadu has requested Karnataka to release more water from Kaveri river. Karnataka has refused to release more water, saying that Kaveri already has less amount of water due to low rainfall. Karnataka has told the Supreme Court that Tamil Nadu's request has no legal basis according to Kaveri water dispute tribunal. So, this is the crux of the news article given here. In this context, let us learn about interstate water disputes, constitutional provisions and acts regarding it. At present, interstate water disputes are one of the most controversial issues in Indian federalism. The recent cases of Krishna water dispute, Kaveri water dispute, Satellite Yamuna link canal are examples of interstate water disputes. Various tribunals are established to resolve these disputes, but the problem is still ongoing. Now, let us see the constitutional provisions regarding interstate rivers. See the entry 17 of state list deals with water, that is, water supply, irrigation, canal, drainage, water storage and hydropower. Entry 56 of union list empowers the central government for regulation and development of interstate rivers. So, with respect to interstate rivers, central government has the power to regulate it. According to article 262 of constitution, parliament has power to resolve interstate disputes by creating law. So, this article 262 deals with interstate water disputes. It also says that supreme court or any other court cannot involve in this matter. So, under this article 262, parliament has created two laws. The river boards act 1956 and the interstate water disputes act 1956. First, river board act 1956. Under this act, central government can create river boards for the regulation of interstate rivers. But interestingly, no river board has been created till now. Then interstate water disputes act 1956. According to this act, central government can create a tribunal for resolving interstate water disputes between two or more states. Note that the tribunal has powers of civil court and the decision of tribunal would be final and binding. This means that the decision of tribunal cannot be challenged in any court. So far, the central government has set up nine interstate water dispute tribunals. The name of the tribunals, the years in which they were constituted and the state involved in the dispute are mentioned here. You can go through it. So, we have seen constitutional provisions regarding interstate water disputes then interstate water dispute tribunal. So, this is all about this discussion. Let us move to the next part of our discussion. Take a look at this news article. Recently, southern bench of national green tribunal has withheld the environmental clearance that was earlier granted for setting up of fishing harbours in two villages in Vilupuram district. These two villages are located in intertidal area of Kali Valley wetland bird sanctuary. So, this bird sanctuary is known to receive a lot of migrating birds. Apart from this, it is also known to be turtle nesting grounds and it also has mangroves. So, the sites are classified under coastal zone regulation notification 2019. So, the two villages that were chosen to set up fishing harbours are ecologically sensitive areas. See, the national green tribunal noted that environmental impact assessment conducted for setting up of fishing harbours was not satisfactory. This is because the assessment does not include detailed studies on turtle nesting grounds. So, citing all these reasons, the southern bench of national green tribunal withheld the setting up of fishing harbours in this area. So, this is all about the news. In this discussion, let us understand environmental impact assessment in detail. Now, let us start with the definition of environmental impact assessment. See, this EIA environmental impact assessment is a process of evaluating the likely environmental impacts that can be caused by a proposed project. To put it simply, EIA refers to study that helps to understand the effect of proposed project on environment. The EIA takes into broader impacts of proposed project like social, economic, cultural and health impacts. Now, what is the importance of EIA? EIA helps to predict environmental impacts at yearly stage. That is, in the stage of project planning and design. The EIA helps the stakeholders to find some practical ways to reduce adverse impacts on environment. Apart from this, EIA can also help them to shape their products to suit the local environment. So, by conducting environmental impact assessment, the businesses can be able to achieve both environmental and economic benefits. Now, talking about EIA in India. In India, the environmental impact assessment is covered under Environmental Protection Act 1986. This act contains various provisions on EIA process. Under the provisions of Act, from time to time, the central government has issued several EIA notifications. The recent one is EIA notification 2006. This notification provides a four-stage process for EIA, that is, environment impact assessment. Now, let us see the four-stage process involved in EIA. The first stage is screening stage. In this stage, the proposed project is screened to determine whether it requires a full impact assessment study or partial study. See some projects like cement plants, lead acid battery manufacturing plants need full impact assessment study. This is because they have potential to cause more damage to environment. But some projects do not cause severe damage to environment, so they need a partial study only. So, in screening stage, the project is screened to determine the impact assessment study. Then coming to the second stage, it is called scoping stage. In this stage, the project is studied to identify potential impacts on environment. Apart from this, alternate solutions are also identified in this stage to avoid mighty gate or compensate adverse impacts on biodiversity. Then the third stage is called public consultation stage. In this stage, the people who are living near the project site would be consulted to assert their views. In this stage, the people who are living near the project site are consulted and their views are recorded. Note that the outcome of public consultation has to be included in environmental impact assessment and the concerns of local people should be addressed. If only the concerns are addressed, then the project moves to the final stage. The final stage is called appraisal stage. In this stage, the projects are scrutinized by central level expert committee or state level expert committee also involved in this. The committee scrutinizes the application and other documents of proposed project. If the committee is satisfied by the project proposals, then it provides environmental clearance to the project. So, this is the four stage process involved in environmental impact assessment in India. Now we shall see about the two types of project classified under EAA notification 2006. See the EAA notification in 2006 has categorized the project into two categories namely category A and category B. This is based on the impact potential of the project. Now let us see the category A project. See this category A require mandatory environmental clearance. Generally, they do not undergo screening process. This is because the projects under category A ultimately cause more damage to environment. Some of the examples of category A projects are ship-breaking yachts, petrochemical complexes, petroleum refining industries, nuclear power projects. As the category A projects are likely to harm the environment, they undergo a complete environmental impact assessment process. Now coming to the category B projects. See this category B projects undergo screening process. This category is further divided into category B1 project and category B2 project. Here the category B1 project have potential to harm the environment but lesser than the category A project. They also require mandatory environmental impact assessment. Some of the examples of category B1 projects, coal tar processing units, pesticide manufacturing units and so on. Now coming to the category B2 project. See category B2 project are excluded from the complete EAA process. This is because the projects are less harmful to the environment. Apart from this, the government also placed several projects in B2 category to avoid the EAA process. This is done in order to encourage the small and medium industries in their business. Elevated roads, bridges, cement plants are some of the examples of category B2 projects. So this is all about this discussion. Here we have seen four stages of environmental impact assessment and two categories of projects under environmental impact assessment. So this is all about this discussion. Let us move to the next topic. Look at this news. It is about 15th BRICS Summit that recently concluded in South Africa. The news is that six new countries were conferred membership status to BRICS grouping. The countries are Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and UAE. In our discussion today, we will discuss about the significance of this addition. Before the start of 15th Summit, more than 40 countries had expressed interest in joining BRICS. Of the 40 countries, 22 formally applied to join. Finally, these six countries were selected based on the consensus. Now what is the significance of this new addition? Firstly, the experts view that this is an energy-centric expansion. Besides Russia, all of the core BRICS countries like India, China, Brazil and South Africa are non-energy producing countries. If you look at the new additions like Saudi Arabia, Iran, UAE and Egypt, they are net crude oil exporters. By adding these new members, BRICS countries are trying to protect their energy security. For example, India reduced its oil imports from Iran due to US pressure. Actions like this could be avoided in future. Secondly, this expansion can fill the gap left by US in Middle East. See, the US played a role of peace broker in Middle East. But recently, US has neglected this region. This gap can be utilized by countries like China and India. If you can recall, China recently brokered re-establishment of ties between Saudi Arabia and Iran. The recent addition of Saudi Arabia, Iran, UAE and Egypt into the BRICS shows that BRICS is now ready to take up the role of peace broker in Middle East. Then the third significance is de-dollarization of global trade. Many BRICS countries have vocally challenged the use of US dollar in global trade. And many countries in their individual capacity have been looking to some alternatives. For example, India recently signed an agreement with UAE to trade in Indian rupees instead of US dollar. Now with the addition of six new countries, BRICS members will look to expand the use of their own national currency instead of US dollars. This will reduce the global influence of US dollar. The next significance is providing representation to Africa. BRICS was originally formed to ensure cooperation between emerging countries and the global south. The African continent that contains a majority of global south was not represented enough in international institutions. Only South Africa was represented in BRICS. So to address this, Egypt and Ethiopia have been given membership in BRICS. This will provide more voice to Africa in BRICS grouping. Lastly, the addition of members signifies a shift in global order. The US and Europe have been trying to isolate Russia and Iran. The BRICS nations have stayed neutral towards Russia. So these are the signs of major shift in global order. With respect to India, the expansion will help India's push for UN reform, more representation of global south and the expansion of UN Security Council. But the critics are pointing out that all new members are very close to economic ties with China. And the expansion of the BRICS grouping will only benefit China more than any other BRICS countries. So this is all about this discussion. Now let us move to the prelims practice question discussion. Now look at the first prelims practice question. It is about Defense Acquisition Council. So what is the primary role of Defense Acquisition Council? The correct answer is option D. It approves the defense procurement and modernization proposals. Now look at the second question. It is about Interstate River Water Disputes Act 1956. Look at the first statement. President of India can set up a water dispute tribunal. This is wrong because the central government has the power to set up water dispute tribunal. Now look at the second statement. The tribunal must decide the dispute within one year. This statement is also wrong because the tribunal must decide on the dispute within three years which can be extended for two years. So here they have given one year and this statement is also incorrect. Look at the third statement. All decisions of tribunal are final and binding. Yes, we have seen in the discussion no court can intervene in the decisions of this tribunal. So this statement is correct. So the correct answer is option A, only one. Now this is the quiz question for you today. Post the answer in comment section. And this is the main question for you today. Try to write an answer and post it in the comment section. With this we have come to the end of the discussion. If you like the video, please share it with your friends and subscribe to Shankara AS Academy YouTube channel. Thank you.


Mars, named after the God of War, is our nearest neighbour in the solar system and the planet that has captured our imagination for millennia. Over the last four decades, scientists have sent many space missions to the red planet and even more are planned, but why does Mars get so much attention? Mars is the most similar planet in our solar system to Earth and by studying it we can learn more about our own planet, including whether or not life is possible elsewhere. Researchers have suggested that microorganisms may have evolved on Mars in its ancient past and may even be present today, hidden beneath the surface. We can search for evidence of life on Mars by looking for molecules, minerals and even fossils that organisms leave behind when they die. These indicators of past or present life are known as biosignatures. Mars is one of the best places in our solar system to look for signs of ancient life because of its history. Around four billion years ago, conditions on Mars were much more hospitable than they are today. Since life developed on Earth around this time, is it possible that it also developed on Mars? When deciding if a planetary body could be capable of harboring life, we look for water. Nearly everywhere on Earth where there is water, there is life, which is why we think it is so essential, and there is plenty of evidence to suggest that there used to be liquid water on Mars' surface. Mars has geological features which shows where rivers flowed and impact craters were filled with water, forming huge lakes. It is also thought that the climate was much warmer and the atmosphere was better able to protect the surface from space radiation. But where did the water go? Over Mars' history, it lost its atmosphere, so the planet cooled to the point where the water froze and was unable to exist as a liquid on the surface. On the surface of Mars today, average air temperatures are around minus 60 degrees Celsius. It has a thin atmosphere, meaning that the surface of Mars is not protected from high levels of radiation from space. This makes the surface pretty inhospitable, but scientists think that there is a possibility that microorganisms could survive beneath the surface, protected from the space radiation. It is also possible that traces of microorganisms that lived on Mars in its ancient history may still remain there to be found. Today, water on the surface of Mars exists mainly as ice in the poles. However, some evidence suggests that there may be large reservoirs of water existing underneath the ice at the planet's south pole. Although this is not certain if there is subsurface water on Mars, it would be a huge discovery, as these lakes could be habitats for life. At Astrobiology OU, researchers are looking at different areas of the red planet to understand whether microbes could have survived there. We use images and data from spacecraft and rovers to learn about the Martian surface and atmosphere. Some of our researchers even go to some of the most extreme places on Earth, thought to have similar environments to ancient Mars, to understand more about how microbes could have survived on Mars and whether or not they'd leave behind any signs of their existence. Astrobiology OU works across all the sciences, from microbiology to computer science, to try and answer the question, is life possible on Mars?


So, we will continue our discussion on non-collisive oligopoly model also in this session. So, if you remember in the last class, we discussed about the connoit models and connoit models typically a duopoly market situation, where the basic characteristic is that it operates in zero cost of production and that is why we get a marginal cost which is equal to zero and here even if the firm they knows that they are interdependent on each other, but when they fix their output, when they fix their price, they are not taking into consideration the what will be the rivals plan on the basis of their revised plan and that is the reason if you remember in the last class, we discussed a situation when in the period they one fourth of the market remain unexplored, no one produce in that one fourth market, the rest three fourth market is got produced by both the firms A and B. So, we will continue our discussion on the connoit model, we will see that how the equilibrium solution can be achieved or how the equilibrium can be achieved with the reaction and action patterns of the reaction and action pattern of the two firms. So, in the last class, if you remember we talked about a situation where the three fourth of the market generally so, in that case if you remember then A B together they were just producing three fourth of the market and one fourth was not produce either by firm A or firm B at least in the first period. Now, what will happen in period two? So, this in the first case three fourth was produced together by A and B and one fourth was not. Now, how it will happen in period two? From A assume that B just going to produce one fourth of it and he will feel that three fourth is his own market typically for firm A. So, if three fourth is his own market now generally he producing only half of it. So, he will produce half of three fourth in the market and that will come to three eighth of total market. So, A is going to produce three eighth of total market. A assume that B just going to produce one fourth of the market. So, A will think that he is just going to produce only three fourth or the rest three fourth is his own market and he is since A produce only half of the total market in this case the half of total market is half multiplied by three fourth and that comes to three by eight as the total market. Now, we will see how B is going to react to this. So, B will consider that again when it comes to B what will be the assumption for B? The assumption for B is A will continue to produce three eighth of the market means what is the market available for B? The remaining market that is less by three by eight. So, this is one by three eight is the market available to B. Now, B will produce again half of this because half of one by one minus three by eight. So, this is five by sixteen. So, A is going to produce three by eight and B is going to produce five by sixteen. Now, this action reaction pattern continues from always assume that A always assume that B is going to produce half and from B is always going to assume that A is going to produce half. So, they take out that half and they feel that the rest of the market whatever they could produce and again it comes the half of the total market demand. So, this action reaction pattern for form A and B will continue. Now, what is the outcome of this action reaction pattern of form A and B? So, it just goes on with the share that is half of share half of the total market except the share of A for B and half of the total market except the share of B for A. So, this action reaction will continue. So, in this action reaction generally share of A goes on decreasing and share of B goes on increasing and this will lead to a situation where each form supplies to an equal market that is one third of the total market. So, this if you look at initially the share of A was higher than share of B. So, this action reaction pattern will continue and with the action reaction pattern finally, each form will reach to a situation where they are just producing one third of the total market and remaining this one third of total market is produced by A, one third of total market is produced by B and remaining one third is not getting produced either by A or by B. So, we will just take the graph to understand this that how this reach to a situation where they just produce one third, one third and leads to a case where rest one third is remain on produce either by A and B. So, if you remember your reaction function R 1, R 1 dash is the reaction function of form A, R 2, R 2 dash is the reaction function of form B. So, ideally this should be the situation where this is the amount of Q 1, this is the amount of Q 2, Q 1 is produced by A, Q 2 is produced by B. Now, how they reach to this Q 1, A to Q 1, B? It is not they start from here, rather they start from here and what is this R 1 dash here? At this point the total market demand is we can say O R 2 dash is the total market demand. So, out of this initially A will just produce this much and from there actually this action reaction pattern happens. So, if this A is producing this corresponding to this B will produce here that in the reaction curve of B. R 2, R 2 dash is the reaction curve function of B, R 1, R 1 is the reaction curve function of A. So, if you look at if initially A produce this much, now with reaction to this B will produce take a point corresponding to this in the reaction function of B that is R 2, R 2 dash corresponding to this again A will react to this and choose a combination where in the reaction function of A and if you remember what is reaction function? Reaction function gives the different quantity of Q 1 and Q 2, combination of Q 1 and Q 2 where profit is maximum. So, whether B chooses any combination in reaction function 2, A chooses any combination in reaction function 1 ideally they maximize the profit. So, to start with they will do this with A start with this point corresponding to this B choose a combination over here. Now, suppose this is combination 1 then this is combination 2 again chosen by A with respect to the reaction to a combination B by this 1. Then corresponding to this again B will choose a combination here and corresponding to this A will choose a combination here, then corresponding to this again B will choose a combination here and here A will choose a combination here. The action reaction will continue till the time they are not reaching this point E and after reaching the point E, they generally they reach the equilibrium solution where A produce Q 1 unit of output and P produce Q 2 unit of output. So, graphically how we reach the Carnot equilibrium? We reach the Carnot equilibrium through the reaction function approach. We take the reaction function 1, reaction function 2 and the reaction of both the forms get captured in their own reaction function. And finally, eventually this reaction action pattern leads time to the equilibrium, where they this is generally stable and after that at least in that time period again the reaction action pattern never continue. Then we will see the detailed description that how this one-third of this total total market output comes to form 1, we will just take period wise that how this final yield comes to one-third for form A and one-third for form B. So, if you generally we will just take a form of equation in order to understand this. So, period 1 we will see what is form A, what is form B. So, form A is half of total market. So, this is half, form B is half of half market that is a share that comes to one-fourth. Then period 2 what will be for form A, half of 1 minus 1 4, 1 4 is the B share that comes to 3 by 8. Then what will be for form B that is half of 1 minus 3 by 8 that comes to 5 by 16. Now, what will be in period 3 form A that is half of 1 minus 5 by 16, this is B share that comes to 11 by 32. So, this is B share 1 minus this half of it going to be produced by form A, form B again half of 1 minus 11 by 32 this is share of A. So, this comes to 21 by 6 4. Then we will talk about period 4 output of form A and form B. So, this is nothing but just taking the share and making a half of it, but eventually we will see how they just produce one-third of the total output. So, for period 4 this is again half of 1 minus 11 by 32. So, that comes to sorry 1 minus 21 by 64. So, that comes to 43 divided by 128 and form B again half by 1 minus 43 by 128. So, that comes to 85 by 256. Now, this continue till the time period n. So, we will see how what will be the value in period n, because n takes any number. So, it is 1 to n. So, in period n what will be the share of form A and form B. Eventually it is form A half by 1 minus 1 by 3. So, that comes to 1 by 3 and form B half of 1 by 1 minus 3 that is coming to 1 by 3. Now, what is A's equilibrium output now? A's equilibrium output will be half minus 1 by 8 by 1 by 1 minus 4. So, that comes to half minus 1 by 8 by 3 by 4 which comes to 8 by 24 and 1 by 3. This is form A, forms A equilibrium output. Similarly, we will find form B's equilibrium output. So, form B's equilibrium output 1 4 by 1 minus 1 4. So, this is 1 by 4 divided by 3 by 4 which comes to 1 by 3. And for n number of form what will be the industry output and what will be the firms output? Industry output will be n by n plus 1 or to again describe this. This is E is equal to 1 summation E 1 to n 1 by n plus 1. And what will be the individual firms output? n 1 by n plus 1. This will be the individual firms output both for A and B. So, ideally what we want to check over here? We want to check over here is that when the action reaction pattern happens they assume the same behavior from other firms. And that is why if you find some of this which remain on utilize that is not being produced either by firm A or firm B. And that is why they are just producing one-third of the total output of the market and remaining one-third is not being produced either by A and B. Next we will see we will just take an example to understand this Conert model. We will just take a numerical to understand the Conert's model and then we will move into the next model that is Stackelberg model and Paul Swiggy King demand Curve model. So, P is equal to 100 minus 0.5 x. This is the demand function. This is cost function of firm A which is it is a constant cost function. For firm B it is the increasing cost function. We need to find out the profit maximizing level of output for both the firm A and B. And how we will find out this? We generally take the profit maximizing rule that is marginal revenue is equal to marginal cost. So, what is this P? P we can simplify this as 100 minus 0.5 x A plus x B because this x is the total output is the summation of output of A and B. And what will be the profit of A? What will the profit of firm A? That is total revenue minus total cost. And what is total revenue over here? So, total revenue minus total cost will give us the profit of A. So, this is P x A. This is the output. This is the price minus 5 x A. This is the cost function of the firm A. So, what is P x A? That is 100 minus 0.5 that is x. So, this is x A plus x B multiplied by x A minus 5 x A. So, this is cost function. This is P and this is x A. So, if you simplify this then it comes to 100 x A minus 0.5 x A square plus sorry, if you open the bracket this is minus 0.5 x A x B minus 5 x A. Simplifying this again, this is 95 x A because this 5 x A will get deducted from here minus 0.5 x A square minus 0.5 x A and x B. Simplifying this 95 minus x A minus 0.5 x B is equal to 0. So, this is our marginal that is our this profit. So, this comes to marginal revenue equal to minus marginal cost has to be equal to 0. So, this is 95. If you take the derivative then this comes to 95, this comes to x A, this comes to 0.5 x B. So, if you simplify this in term of x A, this comes as a 95 minus 0.5 x B and what is this x A in term of x B? This is the reaction function of A, this is the reaction function of A. Similarly, we will find the reaction function of B and if you remember what is the reaction function of A, this combination gives the maximum level of profit to the firm A. Similarly, we will now find it for B. So, if you simplify this for x B, we get its 50 minus 0.25 x A. So, I am not just doing a detailed calculation for B, you need to follow the same formula to find out the what we did for A, the same formula to find out the reaction curve function for B. Basically, you need to find out the pi, then you have to maximize it, pi is the difference between total revenue, total cost, you need to maximize this and then solve for the value in term of x B in term of x A and that will give us the reaction curve function for reaction curve function for B. Now, to find this value of x A and x B, we need to put the reaction curve function of B in A and we can solve the value for x A. So, in this case, we can find out x B is equal to 50 minus 0.25 x A. So, now, what we will do? We will put the value of x A in order to solve for x B. So, this is equal to 50 minus 0.25 by 95 minus 0.5 x B. So, that comes to 50 minus 23.75 plus 0.125 x B. So, solving for this x B will be equal to 30, x A is equal to 80 and putting a value of x A and x B that is 80 plus 30 that comes to 120 and putting the value of this, we will get the value of B which is equal to 45. So, this is the output of the B, this is the output of A and this is the profit maximizing level of output of A and B using the Carnot model or generally using the reaction curve approach. So, what we discuss in case of a Carnot model? This is a typical situation where two firms engage with each other, they know the interdependence, but they are not considering the fact that they are interdependent to each other in order to decide the output plan. And that is the reason when they are revising their plan, they are not considering the what will be the rival's reaction to the revised plan and ultimately they are reaching to a equilibrium which is stable, but in that case they are not exploring the output for the entire the market. And here we take the assumption that there is zero cost of production and we also discuss in case of Carnot model that when we assume the zero cost and there is a linear demand curve, the output of perfect the output of monopoly is half of the competitive output and the duopoly output is the two third of competitive output. So, to summarize this H per Carnot solution equilibrium is stable and each firm will be maximizing profit by selling equal amount of output at the same price. So, price same they are selling the equal amount of output like one third one third of the total market and equilibrium is reached when both the firm earns maximum profit and have no tendency to change their output. Then we will take the case of another non-colonial model that is generally known as the Stackelberg model and this is the extension of the Carnot model. And this is popularly known as the leader follower model and here one player is sufficiently sophisticated to recognize that the rival firms act according to Carnot assumption. So, here one player they feel that they recognize that rival firms what is the rival firms reaction and what assumption they are taking when they are revising their output plan. So, this sophisticated firm when they recognize that what will be the rival's plan or what is the reaction curve of the rival, they also able to incorporate that in their own profit function because they knows now what is the reaction curve function of the rival. They act as a monopolist, the nape firm will act as a follower. So, here how it is different from the Carnot model? Here in the case of Carnot model when the firm they were deciding about the output plan they are not considering the reaction function of the other firm. But in case of this Stackelberg model they consider this reaction at least one of the firm which sophisticated enough to understand or identify the reaction function of the other firm and they incorporate that in the profit function. And that firm who has identified this they generally act as the leader and the other firms act as a follower and that is why it is also known as the leader follower model this typical Stackelberg model. Both the firms is in equilibrium because they are maximizing the profit. Before going into this equilibrium we will see that ideally graphically how they reach to this equilibrium. So, this is the reaction curve of firm A and this is the reaction curve function of firm B. Now, this is the point where both the. So, this is the iso profit and this is another iso profit for B. So, this is x dash B and this is x dash A. Similarly, this is the iso profit function for A. This is also iso profit function of B. So, this is also the iso profit function of A. This is A, this is B. So, RB is the firm's B reaction function, RA is the firm A reaction function. Now, corresponding to this here we have xA and here we have xB. E is the equilibrium output. Now, let us assume that firm A is sophisticated enough and they operate in typically this RA, RA, E, RA because this is the reaction curve function and they will produce A which is profit maximizing because the iso profit curve is also in the reaction curve function now. Now, in this case A will produce OXA and B will produce OXB. In this case A is the leader and B is the follower. Now, suppose B is the sophisticated firm over here. What is the reaction function? Approach the reaction function is again RB E is the reaction function for firm B. It is equilibrium at the point B. So, B will produce OXB dash and firm A will produce OX dash A.  Like in case of in the first case B is producing less, A is producing more and in the second case B is producing more since B is the leader and A is producing less. Now, till the time the situation in one of them is leader the other is follower or the reverse may happen that B is the leader and A is the follower they will just the output will change because they are sophisticated. Now, what happens when both of them they become sophisticated? Price war will continue. What is the outcome? Price war will continue, but price war is also not beneficial for the oligopolys that also they know. So, initially when both of them they will be trying to sophisticated they will be trying to be the leader in the market. Initially price war will continue, but when they realize that price war is not going to benefit them rather price war is going to benefit the consumer. They will stop over there or they will stabilize price over there and then finally, they get into the cartel. So, Steckelberg model says what Steckelberg model says that it is always profitable if one of them is leader the other follower still the time the follower is also getting their share of profit and their share of output. But the question is that it will not continue for long run because if one firm is getting more profit because he knows that what is the reaction pattern of the other firm. The other firms will also try to do that in the long run and eventually both of them they were trying to be the leader and that will lead to the price war and finally, it is a cartel. So, the end outcome when you think about the end outcome of Steckelberg model still it is not determined fully that what should be the end outcome where they should stop. So, when it comes to monopolist both the firm this typically the steopolis both the firms in equilibrium because they are maximizing their profit and have no tendency to change the output typically in the graph if you have seen at the point E and equilibrium is reached when each firm is able to assess the other output correctly. And this is achieved after a series of change in the output by each firm in the anticipation of other outputs remaining unchanged. Like in the previous case in case of Karnat model we are discussing the action reaction pattern of both the firms finally, take them to the equilibrium and the same thing happen in case of Steckelberg model also equilibrium is reached when each firm is able to assess the other output correctly and this is not happened once this generally happens after the action reaction pattern and in the anticipation that the other outputs is remaining unchanged. Then before going into the next model we will just take a small numerical to understand this Steckelberg model. So, we have a demand function which P is equal to 200 minus Q. Then cost is fixed so MCA and MCB is equal to 80. So, P also we can say this is 200 minus 200 minus QA plus QB and what will be the revenue function of A. So, total revenue of A is P QA.  So, total revenue of A is 200 QA minus Q square A minus QA QB and for marginal revenue of A this is DTRA with respect to DQA. So, this is 200 minus 2 QA minus QB. Marginal cost of A is equal to 80. So, if marginal profit maximizing rule says that marginal revenue of A should be equal to marginal cost of A. So, 200 minus 2 QA minus QB should be equal to 80. So, QA is equal to 60 minus half QB and this is generally the reaction function of reaction function of reaction function of A. Similarly, for B we can find out QB is equal to I am not just getting into the detail of the derivation. So, QB is equal to 60 minus half QA. This is the reaction function of this is the reaction function of B. So, now to solve the value of Q and QB we can just put the value of QA in equation of QB or QB in equation of QA. So, QA is equal to 60 minus half QB. So, 60 minus half QA this is the value of QB. So, simplifying this we will get QA is equal to 40 and QB also is equal to 40. So, QA is equal to 40, QB is equal to 40 and Q has to be equal to 80 since it is QA plus QB and price is equal to 200 minus Q. So, 200 minus 80. So, 120. So, Q is equal to 80, V is equal to 120, QA is equal to 40 and QB is equal to 40 with this demand function and cost using the Stackelberg model. Then generally how general to solve this numerical or how to find out this profit maximizing level of output for both the firms. Using the profit maximizing rule we need to find out the reaction curve function for both the firms that is for firm 1 and firm 2 and from there we can solve the value of output that is QA, QB or Q1, Q2 just putting the value of the others and that gives us the total output in the market and also the output specific to the firm. So, here typically the reaction function generally we say that this is the reaction function approach through which generally we get the individual firms output and the total market output. Then we will get into the discussion of king demand curve model and king demand curve model is also one form of the non-collusive oligopoly model where it assume that there is no cooperation or no collusion among the firm in case of a king demand curve model. And this model generally explain us that why the price is rigid for the firms and at least in the oligopoly market why it changes very slowly over time. So, individual firms basically afraid to change their price because of what other firms might do. So, if one firm change the possibility that the other firm may not to change and that is the reason they afraid to change the price and that is the reason in case of oligopoly market maybe decreasing price is not so slow, but increasing price is slow because others may not follow to this. There are certain assumption we take in order to understand the king demand curve model. The first one if a firm raises price other firms own follow and firm loges a lot of business. So, whenever there is a increase in the price the other firm will not follow it automatically and that is why that firm who has raised the price they generally lose lot of business. So, demand is very responsive or elastic to price increase and if a firm lower the price other firm follow, but the firm does not gain much business. So, in this case if you look at this part of the demand curve is inelastic because whenever one firm lowers the price the other firm also lowers the price in order to get more market share or more demand and that is why in this case the change in the price is not affecting the quantity demanded of the firm much and that is why we get an inelastic demand curve. So, demand is very responsive or the elastic to increase in the price and demand is fairly unresponsive and inelastic to price decrease. So, if you look at this graph if reduce price and competitor match the price typically if you look at now we are getting two set of the demand curve.  If reduce price and competitor match the price cut then move along the inelastic demand curve that is segment D i and if increase in the price and competitor is not following that then we get in the segment of the elastic. So, we have two kind of demand curve now. One we have a inelastic demand curve and we have a elastic demand curve. So, this inelastic demand curve is when price decreases other firm also decreases the price and elastic is the basis is that whenever there is a increase in the price other firm keep the price constant. So, ideally what will be the demand curve for the firm? There are two segment one and one segment of the elastic demand curve and one segment of the inelastic demand curve. So, this segment of the elastic demand curve because of the fact that whenever there is increase in the price the competitor they are not matching to it and this part of the demand curve is one whenever the price cut happens the other firms or the competitor also decreasing the price. So, increase in the price competitor price remain constant decrease in the price the competitor also decreasing the price that is why the demand curve of the firm has two segment one is the elastic segment with respect to increase in the price and other is the inelastic segment that is the with respect to decrease in the price. Here to remember that decrease in the price is generally followed by the competitor, but increase in the price is not followed by the competitor and that is why we get two separate segment in the demand curve one is the elastic segment and other is the inelastic segment. So, this is generally the shape of the king demand curve where the upper portion is elastic and the lower portion is inelastic. The upper portion is come from the elastic demand curve and in this segment whenever there is a increase in the price because increase in the price the competitor they are not going to follow it and the downward segment is the part of the inelastic segment where whenever there is a increase in the decrease in the price competitor generally follows this. Now, how this marginal revenue curve here we get? This is the first case we get also two marginal revenue curve here because since we have two demand curve we have two marginal revenue curve. The first segment of the marginal revenue curves comes from the top part of the demand curve which is the elastic demand curve. So, here this marginal revenue curve with respect to the elastic segment of the demand curve. Then we will see what is the marginal revenue curve for the bottom segment and for the marginal revenue curve for the bottom segment is again it is a part of the inelastic demand curve. So, if you will find there are two marginal revenue curve with respect to two demand curve because it is one demand curve, but it has two segment one is the elastic segment other is other one is the inelastic segment. So, one marginal revenue curve with respect to the elastic segment and the other marginal revenue curve with respect to the inelastic segment. So, this is for the bottom part of the demand curve and previously it was the top part for the demand curve. So, this is the inelastic part of the demand curve. So, this is generally the king demand curve and we have two marginal revenue curve. If you notice here there is a gap between the two marginal revenue curve why there is a gap between two marginal revenue curve because our demand curve has a kink and at the point of kink we are not able to decide which one is the marginal revenue curve. So, if you look at demand curve is generally known as a king demand curve because it has a kink between the two segment of the demand curve that is between the elastic segment and inelastic segment of the demand curve. Corresponding to the elastic segment we have one marginal revenue curve corresponding to the inelastic segment we have another marginal revenue curve. At the corresponding to the point of kink there is a gap between the marginal revenue curve one and marginal revenue curve two. So, that is why in case of a king demand curve there is a gap between the marginal revenue curve one and marginal revenue curve two. Now, the question comes how the marginal cost should be because we need to get the equality between the marginal revenue and marginal cost to get the profit maximizing level of output. And the marginal cost should cut which segment of the marginal revenue curve whether the segment related to the elastic demand curve or whether the segment related to the inelastic demand curve. So, marginal cost generally intersect the marginal revenue curve in the gap in the vertical segment in the gap between the marginal revenue one and marginal revenue two. And whenever there is a increase in the marginal cost if the cost shift up slightly, but marginal cost still intersect the marginal revenue in the vertical segment there will be no change in the price. Because if any point of time if marginal cost goes to marginal revenue one that is elastic segment or to the inelastic segment still it will not consider as for the whole demand curve whole king demand curve. And that is why you will find there is a price rigidity and this is the outcome of the price rigidity that we get to level of marginal revenue curve and the marginal cost curve is not going for the marginal revenue one or marginal revenue two rather it is in the gap. So, even if there is a increase in the cost till the firm is not changing the price because if it changing the price again it may lead to a situation that the other firm will not follow it and they will get into the loss. So, king demand model generally it provides the explanation detailed description of firm under oligopoly and it explains the various characteristics such as price rigidity why there is a indeterminate demand curve, non-price competition and independent decision making. But this model fails to explain a basic question how price is determined because it is it is really a fuzzy when the price is decided in the gap in the vertical segment between marginal revenue one and marginal revenue two. And that is why this model has a criticize on the ground that it fails to explain the basic question of any model that how the price and output is determined because we have a king demand curve we have two level of marginal revenue curve that is marginal revenue one and marginal revenue two. So, we will just take a numerical to understand that when you take a numerical when you take a real production function when we take a real demand function cost function whether we get the gap between the marginal revenue one and marginal revenue two with respect to two different demand and whether the marginal cost also pass through the vertical segment or the gap between the marginal revenue one and marginal revenue two. So, we will take two demand function we will take as Q 1 and we will take as Q 2. So, we have two demand function one is 28 minus 4 P 1 and second is 10 minus P 2 we will take a total cost function that is 1 4 Q square plus Q plus 50 and we need to find out the marginal revenue marginal revenue for both the firms marginal cost price output and we need to say what is the upper and lower limit of MR because that will tell us whether there is a vertical segment or gap between marginal revenue or not and whether MC falls in the gap of 2 MR or not. So, to start with we will find out since we have Q 1 is equal to 28 minus 4 P 1 and we will find P 1 is equal to 7 minus 1 by 4 Q 1 Q 2 is equal to 10 minus P 2. So, P 2 is equal to 10 minus Q 2 total revenue one is P 1 Q 1. So, that comes to 7 minus 1 by 4 Q 1 square and total revenue on corresponding to this will get the marginal revenue one that is 7 minus half Q 1. Similarly, total revenue 2 is P 2 Q 2. So, this is 10 Q 2 minus Q 2 square marginal revenue 2 is 10 minus 2 Q 2 and we have now marginal revenue 1 we have now marginal revenue 2. We will find out the marginal cost from our total cost function so, total cost function is 1 4 Q square plus Q plus 50. So, marginal cost will come as 1 plus half Q and if you look at the king at the point of king both the demand curve should intersect and to get this intersection we have to do is equal to Q is equal to Q 1 plus Q 1 equal to Q 2. So, 7 minus 1 4 Q is equal to 10 Q. So, Q is equal to 4 and P is equal to 6. So, taking the value of Q and P marginal revenue 1 is equal to 7 minus half into 4 that is equal to 5, marginal revenue 2 is equal to 10 minus 2.4 that is 2. So, marginal revenue 1 is 5, marginal revenue 2 is 2. Now, we need to find out MC. So, MC is equal to 1 plus half Q. So, this comes to 1 plus half multiplied by 4. So, this comes to 3. So, we can say that Q is equal to 4 this is the output P is equal to 6. We have first segment of MR is equal to 5 the value of second segment of MR is equal to 2 and MC is equal to 3. So, we can also prove that the MC falls in the gap of 2 level of MR that is marginal revenue 1 and marginal revenue 2. So, today we discuss about typically in this session we discuss about the Cournot model, Stackelberg model and King demand curve model and all these 3 models are part of non-collusive oligopoly model. In the next session we will discuss about the collusive oligopoly model typically the cartels and the price