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Course Detail

Course Name Engineering Economic Analysis
Course Code 15MEC331
Program B. Tech. in Mechanical Engineering
Year Taught 2019


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

Text Books

  • 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

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