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    ARIANA NICOLE RELIGIOSO
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    Here are the key points for the 3 questions in your Engineering Economy assignment: 1. Competition - Many buyers and sellers, none have significant control over prices. Oligopoly - Few dominant sellers, explicit or implicit collusion affects prices. Monopoly - Single seller, can influence prices and restrict output. 2. Law of supply and demand - As price increases, quantity supplied increases and quantity demanded decreases. Equilibrium price is where quantity supplied and demanded are equal. 3. Law of diminishing returns - Beyond a certain level of input, adding more of another input yields lower incremental output on average. Each additional unit of input produces less additional output.

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    Here are the key points for the 3 questions in your Engineering Economy assignment: 1. Competition - Many buyers and sellers, none have significant control over prices. Oligopoly - Few dominant sellers, explicit or implicit collusion affects prices. Monopoly - Single seller, can influence prices and restrict output. 2. Law of supply and demand - As price increases, quantity supplied increases and quantity demanded decreases. Equilibrium price is where quantity supplied and demanded are equal. 3. Law of diminishing returns - Beyond a certain level of input, adding more of another input yields lower incremental output on average. Each additional unit of input produces less additional output.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    23 views12 pages

    Chap 1 2017

    Uploaded by

    ARIANA NICOLE RELIGIOSO
    Here are the key points for the 3 questions in your Engineering Economy assignment: 1. Competition - Many buyers and sellers, none have significant control over prices. Oligopoly - Few dominant sellers, explicit or implicit collusion affects prices. Monopoly - Single seller, can influence prices and restrict output. 2. Law of supply and demand - As price increases, quantity supplied increases and quantity demanded decreases. Equilibrium price is where quantity supplied and demanded are equal. 3. Law of diminishing returns - Beyond a certain level of input, adding more of another input yields lower incremental output on average. Each additional unit of input produces less additional output.

    Copyright:

    © All Rights Reserved
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    Flag for inappropriate content
    of 12

    GE 301

    ENGINEERING ECONOMY
    3 lecture units

    An Introduction by
    George Y. Chao Jr.
    Assistant Professor
    Department of Chemical Engineering
    University of Santo Tomas
    Engineer X:
    "Money matters will be handled by
    someone else. It is not something
    I need to worry about."

    True? ______
    False? ______
    Which conductor should be used for electrical cables?
    Electrical
    Material Conductivity Notes
    (S·m-1)
    Silver 6.30 × 107 Best electrical conductor of any known metal
    Commonly used in electrical wire applications
    Copper 5.69 × 107 due to very good conductivity and price
    compared to silver.
    Referred to as 100% IACS or International
    Annealed Copper Standard. The unit for
    Annealed expressing the conductivity of nonmagnetic
    5.80 × 107
    Copper materials by testing using the eddy-current
    method. Generally used for temper and alloy
    verification of aluminium.
    Gold is commonly used in electrical contacts
    Gold 4.52 × 107
    because it does not easily corrode.
    Commonly used for high voltage electricity
    Aluminum 3.5 × 107
    distribution cables

    Money also matters for engineers.


    An engineer routinely face two
    important questions regarding
    his design of a process or
    equipment:
    Does it work?
    Is it technically sound?

    How much does it cost?


    Is it profitable? Is it economically sound?
    GE 301
    ENGINEERING ECONOMY
    3 lecture units

    Textbook: Engineering Economy


    by Sta Maria and Matias, 4th edition

    Interest and Money-Time Relationships


    Depreciation
    Methods for Making Economy Studies
    Comparing Alternatives
    Engineering Economy
    Definitions

    • The analysis and evaluation of the factors


    that will affect the economic success of
    engineering projects to the end that a
    recommendation can be made which will
    ensure the best use of capital. (Sta Maria)

    • Involves the systematic evaluation of the


    economic merits of proposed solutions to
    engineering problems. (Sullivan)
    Origins of Engineering Economy
    Pioneer: Arthur M. Wellington, civil engineer
    • latter part of nineteenth century (1847-1895);
    • addressed role of economic analysis in
    engineering projects;
    • area of interest: railroad
    building
    Necessities versus Luxuries
    • Products or services • Products or services
    that are required to that are desired by
    support human life and humans
    activities • Purchased only if
    • Purchased in somewhat money is available after
    the same quantity by the required necessities
    consumers even if the have been obtained
    price varies significantly
    Demand
    • the quantity of a certain • Elastic demand occurs
    commodity that is when a decrease in
    bought at a certain selling price results in a
    price at a given place greater than
    and time. proportionate increase
    in sales.
    • Inelastic demand occurs
    when a decrease in
    selling price results in a
    less than proportionate
    increase in sales.
    Demand
    • Elastic demand occurs Luxury
    when a decrease in
    selling price results in a
    greater than

    Demand
    proportionate increase
    in sales.
    Necessities
    • Inelastic demand occurs
    when a decrease in
    selling price results in a Price
    less than proportionate
    increase in sales.
    Demand Supply
    • the quantity of a certain • the quantity of a certain
    commodity that is commodity that is
    bought at a certain offered for sale at a
    price at a given place certain price at a given
    and time. place and time.
    Engineering Economy
    Assignment number 1

    1. Differentiate competition, oligopoly,


    and monopoly.

    2. State the law of supply and demand.


    Explain briefly.

    3. State the law of diminishing returns.


    Explain briefly.

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