COURSE SUMMARY
Course Title: 
Engineering Economic Analysis
Course Code: 
15MEC331
Year Taught: 
2015
2016
2017
2018
Type: 
Elective
Degree: 
Undergraduate (UG)
School: 
School of Engineering
Campus: 
Bengaluru
Chennai
Coimbatore
Amritapuri

'Engineering Economic Analysis' is a course offered in the B. Tech. in Mechanical Engineering program at School of Engineering, Amrita Vishwa Vidyapeetham.

Unit 1

Economics: Nature and scope of managerial economics. Economic theory and managerial economics.

Cost Concepts: Types of costs - Cost functions. Cost controls: reduction – Tools & Areas. Pricing policies - methods. Capital budgeting - cost of capital. Appraising project profitability.

Unit 2

The essentials of demand and supply: The law of demand. Market demand curve. Other determinants of market demand. The law of supply. Determinants of market supply. The market mechanism.Price elasticity of demand.

Profit and revenue maximization: Optimal input combination. Total revenue maximization.

Unit 3

Market structure: Perfect competition and monopoly. Characteristics of monopolistic competition. Oligopoly.

Operations Research techniques in managerial economics: Inventory models. Theory of games. Decision theory, Risk and Uncertainty, Measuring risk, Consumer behavior and risk aversion, Decision making under uncertainty with complete ignorance

  • Webster T. J. - ‘Managerial Economics- Theory and Practice’ - Elsevier - 2004
  • Panneerselvam, R. - ‘Engineering Economics’– PHI - 2001
  • Varshney R. L. and Maheshwari K. L. - ‘Managerial Economics’ - S .Chand & Sons - 1997 - 13th Edition.
  • Harrison B, Smith C. and Davis B. - ‘Introductory Economics’ – Macmillan - 1992