IE First LE

26問 • 2年前

問題一覧

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 madr which will insure the best use of capital(Sta. Maria, ND)

Engineering Economy

A nearby dollar is worth more than a distant dollar

Principle 1

All that counts is the difference among alternatives

Principle 2

Marginal Revenue must exceed marginal cost

Principle 3

Additional risk is not taken without the expected additional return

Principle 4

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 availablr after the required necrssities have been obtained.

Luxuries

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

Consumer goods and services

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

is the opposite of perfect competition. It exists when a unique product or service is available from a single vendor and that vender can prevent the entry of all others into the market

Monopoly

Exists when there are so few suppliers of a product or service that action by one will almost inevitably result in a similar action by the others

Oligopoly

is the quantity of a certain commodity that is offered for sale at a certain price at a given place and time.

Supply

Under conditions of perfect competition, the price at which a given product will be supplied and purchased is the price that will result in the supply and the demand being equal

Law of supply and demand

When the use of one of the factors of production is limited, either in increasing cost or by absolute quantity, a point will be reached beyond which an increase in the variable factors will result in a less than proportionate increase in output

The law of Diminishing Returns

Includes all the initial expenses for starting any enterprise. In General, this will be the sum of the promotion and development costs. Ex. Investigation of the market possibilities Source of Raw Materials Source of Labor Force Negotiations

First Cost

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

Fixed Cost

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

Variable Costs

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

Sunk Cost

Refers to any increase in cost

Increment Cost

The additional cost of producing one more unit of a product.

Marginal Cost

Geotech Quiz 1

John Rotrix Tumaneng · 38問 · 2年前

Geotech Quiz 1