IE 111- Chapter 1

25問 • 2年前

問題一覧

is one of the social sciences which consists of that body of knowledge dealing with people and their assets or resources.

Economics

has also been defined as the sum total of knowledge which treats of the creation and utilization of goods and services for the satisfaction of human wants.

Economics

involves formulating, estimating, and evaluating the expected economic outcomes of alternatives designed to accomplish a defined purpose. Mathematical techniques simplify the economic evaluation of alternatives (Blank and Tarquin, 2005).

Engineering Economy

is 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 insure the best use of capital (Sta. Maria, ND)

Engineering Economy

Principle 1

A Nearby Dollar Is Worth More Than A Distant Dollar

Principle 2

All That Counts Is The Difference Among Alternatives

Principle 3

Marginal Revenue Must Exceed Marginal Cost

Principle 4

Additional Risk Is Not Taken Without The Expected Additional Return

are those products or services that are directly used by people to satisfy their wants.

Consumer Goods And Services

are used to produce consumer goods and services or other producer goods.

Producer Goods And Services

are those products or services that are required to support human life and activities, that will be purchased in somewhat the same quantity even though the price varies considerably.

Necessities

are those products or services that are desired by humans and will be purchased if money is available after the required necessities have been obtained.

Luxuries

is the quantity of a certain commodity that is bought at a certain price at a given place and time.

Demand

occurs when a decrease in selling price result in a greater than proportionate increase in sales.

Elastic Demand

occurs when a decrease int the selling price produces a less than proportionate increase in sales.

Inelastic Demand

occurs when the mathematical product of volume and price is constant.

Unitary Elasticity Of Demand

occurs in a situation where a community or service is supplied by a number of vendors and there is nothing to prevent additional vendors entering the market.

Perfect Competition

ncludes all the initial expenses for starting any enterprise.

First Cost

sum of the promotion and development costs

First Costs

are those which remain relatively constant regardless of any change made in operations or policy

Fixed Costs

are those which vary with output or any change in the activities of an enterprise

Variable Costs

refers to any increase in cost

Increment Costs

has been defined by different authors in different senses. De Garmo defines differential cost to be those costs “which arise as the result of a change in operations or policy”, while Thuesen defines the term as “the ratio of a small increment of cost and a small increment of output”

Differential Costs

is the additional cost of producing one more unit of a product. Thus, ____________ may also be considered as increment cost for an additional unit.

Marginal Costs

represents money which has been spent or capital which has been invested and which cannot be recovered due to certain reasons

Sunk Costs

Xeth LE 5

Mharvie Nagal · 39問 · 2年前

Xeth LE 5