Engineering Economics 2021/2022

Bacheca » Syllabus And Suggested Manuals

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

INVESTMENT ANALYSIS

Thuesen G. J., Fabrycky W. J., Engineering Economy, Pearson

or as an alternative

Newnan D. G., Eschenbach T. G., Lavelle J. P., Engineering Economic Analysis, Oxford University Press

MICROECONOMICS

Pindyck R., Rubinfeld D., Microeconomics, Pearson