ENGINEERING ECONOMICS UNIT-I Introduction to economic and Engineering Economics. Basic concepts of Economics: Demand Analysis, Supply analysis, Market Equilibrium. Revenue Analysis. Demand Forecasting- Quantitative methods. UNIT-II Production and cost Analysis: Short Run and Long Run Production Functions, Producer’s Equilibrium condition.CobbDouglas Production Function. Cost Concepts: Short Run and Long Run Cost curves. Break-Even Analysis. Market: Perfect Competition, Monopoly, Discriminating monopolist.
UNIT-III Time Value of money: Interest Formulas and their applications. • Evaluation of Investment, Proposals-Present Worth method of comparison, Future worth method of comparison, Annual Equivalent Method of comparison. • Economic Appraisal Technique-Net Present Value, Rate of Return, Cost Benefit analysis. • Depreciation and Income Tax Consideration. Inventory control. • UNIT-IV- Money Banking: Functions of commercial banks.Inflation.Money market and Capital market. • Business cycle and Business policies. National Income Accounting.
What is Engineering Economics about? Engineering economics is a subset of the subject Economics. Time value of money is central to most engineering economic analyses. Do nothing alternative’. The opportunity cost of making one choice over another must also be considered.
Non-economic factors to be considered-called Attributes. Costs as well as revenues are considered, for each alternative. Inflation,uncertainty,taxes,tax credits, accounting, cost estimations, capital financing, depreciation of assets etc. Engineering industrial economics is an important part of industrial or business economics. So basically we are talking of interlinking of economies.