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Read "Simon Bolivar on Government in Latin America" (20-1a). In his Jamaica Letter, Simon Bolivar argues that the political and social circumstances of Latin American independece are unique. What does he mean by that? Is he convincing in his claim? What problems does he see for Latin America's future and did he anticipate some of the issues that continue in Latin America today?
Bill is thinking of investing in a Silicon Valley start-up. His von Neumann-Morgenstern utility-of money function is U(w) = 9+w-(w^2/100) where w denotes wealth measured in thousands of dollars (thus w = 1 means $1,000). Would a risk-neutral person m..
Suppose that the government imposes a temporary tarpon all imports, which makes imports more expensive relative to domestic residents (reducing the trade balance for any fixed level of the real exchange rate). Discuss the implications of this policy ..
A commuter drives 10 miles on a highway at 60 miles/hour, and then drives 10 miles on local streets at 15 miles/hour. Use the harmonic mean to find the average speed of the trip.
If your neighbour returns from a shopping trip saying that she got a lot of consumer surplus from her purchases
What's the point of creating new bills with more security measures to prevent counterfeiting? If the old bills are still acceptable as currency, why would anyone even try to counterfeit new banknotes with all these security features?
An airline transportation consultant offers the CEO of Blue Star struggling new commercial airline company
A monopolistic competitor wishing to maximize profit will select profit will select a quantity where: If a firm is producing a quantity where marginal revenue exceeds marginal cost, the firm should ____existing levels of production, in order to____. ..
Maria is a hostess at a local restaurant. When she earned $8 per hour, she worked 35 hours per week. When her wage increased to $10 per hour, she decided to work 40 hours. However, when her wage increased again to $12 per hour, she decided to cut bac..
A local dentist read an article published by the American Dental Association estimating that the elasticity of demand for the representative dentist's services is -2.5. How much should the dentist mark up her price over marginal cost?
Illustrate what price should the firm charge if it wants to maximize its profits in the short run. What arguments can be made for charging a price higher than this price.
Did the economic recession we've experienced recently affect your organization
Assume that there are two identical firms in an industry, each producing the same good at the same constant marginal cost of $60. Make a table, similar to the one we made in class, for the Bertrand, Cournot and Monopoly models, showing the following:..
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