Engineering Economics 2018/2019

Bacheca » Syllabus And Suggested Manuals

SYLLABUS

INVESTMENT ANALYSIS

• interest and interest rate: what are and what do they represent; the time value of money
  
• simple vs compound interest rate; nominal vs real interest rate
  
• cash flows and the meaning of equivalence; equivalence calculations
  
• investment and loan projects; generating mutually excluding alternatives from a set of projects
  
• bases for comparison of investment alternatives: Present Worth (PW), Future Worth (FW), Annual Equivalent (AE), Internal Rate of Return (IRR), Payback Period (PP), Project Balance (PB)
  
• evaluating investment alternatives using MARR
  

MICROECONOMICS

• what does “economy” mean; why studying microeconomics; what is a market
  
• market mechanism; demand and supply models; elasticity
  
• consumers’ preferences; utility function; budget line; optimal consumer’s choice
  
• elements on production function and production costs: what is a production function; isoquants; isocosts; optimal production choices in the long run
  
• profit maximization; marginal revenues and marginal costs
  
• equilibrium in a perfectly competitive market; clearing price and quantity; consumers’ surplus and producers’ surplus; welfare
  
• equilibrium in monopolistic market; clearing price and quantity; consumers’ surplus and producers’ surplus
  
• net welfare loss in a monopolistic market
  

SUGGESTED MANUALS

The resources and manuals listed below are recommended as reference material

• INVESTMENT ANALYSIS
  Thuesen G. J., Fabrycky W. J., Engineering Economy, Pearson

• MICROECONOMICS
  Pindyck R., Rubinfeld D., Microeconomics, Pearson

Lecture notes published in this website are part of the program, along with elements emerged from discussions during classes.