A Fundamental Contradiction in Standard Rent Theory: A Case Study on Varian's "Intermediate Microeconomics"

In this paper, I examine Varian’s treatment of rent in his textbook on Microeconomics. I argue that he holds contradictory conceptions: sometimes rent is defined as surplus over cost whereas sometimes it is defined as cost, as the opportunity cost of fixed factors. I start by arguing that the distinction between fixed and variable factors is not the key for the definition of rent; ultimately, it is monopoly. Varian’s conception of rent is, essentially, Ricardo’s: rent is extraordinary profit turned rent. On the basis of a selfinconsistent notion of opportunity cost, Varian introduces the idea that rent is the opportunity cost of land, when what he actually defines is the opportunity cost of not renting the land. I also critically examine the related notion of “producer’s surplus”, and show that Varian’s treatment repeats the same contradiction as in rent.

Profit and Cost in "Modern" Post-Marxian Profit Theory: A Case Study from Varian's "Intermediate Microeconomics"

In this paper, I examine the treatment of competitive profit of professor Varian in his textbook on Microeconomics, as a representative of the “modern” post-Marxian view on competitive profit. I show how, on the one hand, Varian defines profit as the surplus of revenues over cost and, thus, as a part of the value of commodities that is not any cost. On the other hand, however, Varian defines profit as a cost, namely, as the opportunity cost of capital, so that, in competitive conditions, the profit or income of capital is determined by the opportunity cost of capital. I argue that this second definition contradicts the first and that it is based on an incoherent conception of opportunity cost.

Profit as Cost versus Profit as Surplus over Cost: A Case Study on Varian's "Intermediate Microeconomics"

On the analysis of Varian’s textbook on Microeconomics, which I take to be a representative of the standard view, I argue that Varian provides two contrary notions of profit, namely, profit as surplus over cost and profit as cost. Varian starts by defining profit as the surplus of revenues over cost and, thus, as the part of the value of commodities that is not any cost; however, he provides a second definition of profit as a cost, namely, as the opportunity cost of capital. I also argue that the definition of competitive profit as the opportunity cost of capital involves a self-contradictory notion of opportunity cost.

Using problem-based learning for introducing producer theory and market structure in intermediate microeconomics

This paper shows how instructors can use the problem‐based learning method to introduce producer theory and market structure in intermediate microeconomics courses. The paper proposes a framework where different decision problems are presented to students, who are asked to imagine that they are the managers of a firm who need to solve a problem in a particular business setting. In this setting, the instructors’ role is to provide both guidance to facilitate student learning and content knowledge on a just‐in‐time basis

Essays in applied microeconomics

Esta tese é composta de três artigos. No primeiro artigo, ``Risk Taking in Tournaments", é considerado um torneio dinâmico no qual jogadores escolhem como alocar seu tempo em atividades que envolvem risco. No segundo artigo, ``Unitização de Jazidas de Petróleo: Uma Aplicação do Modelo de Green e Porter" é analisado a factibilidade de se haver um acordo de cooperação em um ambiente de common-pool com incerteza nos custos das empresas. No terceiro artigo, ``Oilfield Unitization Under Dual Fiscal Regime: The Regulator Role over the Bargaining", por sua vez, é estudado a unitização quando existem dois regimes fiscais distintos, como os jogadores se beneficiam disso e o papel do regulador no regime de partilha.

Strengthening development: the interplay of macro- and microeconomics

Includes bibliography

The interplay of macro- and microeconomics

The statement starts with a balance of the 15-years period of the economic reforms occurred in the region, up to the Mexican financial crisis in 1995. The main lesson to be drawn from this period refers to the need of supplementing and reinforcing macro-economic policy, together with the application of public policy measures at the micro-, meso-, and institutional levels, in order to support productive modernization, the development of financial and labour markets and the establishment or strengthening of institutions which can help to create an environment conducive to development. Further on, the statement explains the strategies proposed by ECLAC for overcoming the obstacles to accelerated growth within a framework of stability, social equity and democracy. These refer to expanding gross domestic product, increasing productivity and providing more and better jobs. In order to achieve this goal it is necessary to ensure macroeconomic equilibria in its broader sense, raise the level of national saving and channel it into productive investment, as well as an accelerated and systematic incorporation of production and management techniques designed to raise productivity in a growing number of firms. In the last part, the statement refers to the situation of the United Nations and honors the memory of Dr. Raúl Prebisch, on the tenth anniversary of his death.

Microeconomics and the space economy; the effectiveness of an oligopolistic market economy.

Includes bibliography.

A review of rationale for allocating costs and payments in producing and supplying public sector information

Presentation given by Dr John S Cook at the Queensland Spatial Conference 2008, Global Warming: What’s Happening in Paradise?, held at Holiday Inn, Surfers Paradise,Queensland from 17-19 July, 2008 This presentation provides some semblance of an information infrastructure that is aligned generally to problems of governance in complex organisations.

Genesis and role of standards : theoretical foundations and socio-economical model for the construction and use of standards

A key issue for the economic development and for performance of organizations is the existence of standards. As their definitions and control are source of power, it seems to be important to understand the concept and to wonder about the representations authorized by the concept which give their direction and their legitimacy. The difficulties of classical microeconomics of establishing a theory of standardisation compatible with its fundamental axiomatic are underlined. We propose to reconsider the problem by carrying out the opposite way: to question the theoretical base, by reformulating assumptions on the autonomy of the choice of the actors. The theory of conventions will offer us both a theoretical framework and tools, enabling us to understand the systemic dimension and dynamic structure of standards seen as special case of conventions. This work aims thus to provide a sound basis and promote a better consciousness in the development of global project management standards, aiming also to underline that social construction is not a matter of copyright but a matter of open minds, collective cognitive process and freedom for the common wealth.