Elementary Economic Analysis
Whether it is a business situation or a day-to-day event in somebody’s personal life, there are a large number of economic decision making involved. One can manage many of these…
PROFIT VOLUME RATIO (P/V RATIO)
A company determines the selling price of its products after calculating of the fixed cost, variable cost involved in productions and sales of the items produced by it. There are…
Sunk Costs, Opportunity Costs and Break-even Analysis
Sunk costs Sunk costs are costs that have already been incurred in the past and that nothing we do now or in the future can affect. These costs won’t affect…
Scope of engineering economics
Definition and Scope of Engineering · Economics As stated earlier, efficient functioning of any business organization would enable it to provide goods/services at a lower price. In the process of managing…
Types of Efficiency
Efficiency of a system is generally defined as the ratio of its output to input. The efficiency can be classified into technical efficiency and economic efficiency. 1.Technical efficiency It is…
Laws of supply and demand
Laws of supply - states that the quantity of a commodity supplied varies directly with the price, other determinants of supply remaining constant. v If the cost of inputs increases, then naturally,…
Introduction to Economics
INTRODUCTION Ages ago, the most significant barriers to engineers were technological. The things that engineers wanted to do, they simply did not yet know how to do, or hadn't yet…
The Relatively Recent Arrival of Economic Growth
Let’s begin with a brief overview of the spectacular patterns of economic growth around the world in the last two centuries, commonly referred to as the period of modern economic…
The Macroeconomic Perspective
Macroeconomics focuses on the economy as a whole (or on whole economies as they interact). What causes recessions? What makes unemployment stay high when recessions are supposed to be over?…
Price Elasticity of Demand and Price Elasticity of Supply
Both the demand and supply curve show the relationship between price and the number of units demanded or supplied. Price elasticity is the ratio between the percentage change in the…
