1.

Engineering Economics
Engineering economics, previously known as engineering economy, is a subset
of economics for application to engineering projects. Engineers seek solutions to problems, and the
economic viability of each potential solution is normally considered along with the technical aspects.
Fundamentally, engineering economics involves formulating, estimating, and evaluating the
economic outcomes when alternatives to accomplish a defined purpose are available.

2. Perfect Competition
the situation prevailing in a market in which buyers and sellers are so numerous and well
informed that all elements of monopoly are absent and the market price of a commodity
is beyond the control of individual buyers and sellers.
3. Price Elasticity
Price elasticity of demand is a term in economics often used when
discussing price sensitivity. The formula for calculating price elasticityof demand
is: Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price.
4. Quality Budget Line
A graphical depiction of the various combinations of two selected products that
a consumer can afford at specifiedprices for the products given their
particular income level. When a typical business is analyzing a two product
budget line, the amounts of the first product are plotted on the horizontal X axis
and the amounts of the second product are plotted on the vertical Y axis.
5. Functions Of Management
Planning
Organizing
Staffing
Directing
Controlling
6. Welfare Ananlysis
The process that economists use for determining how much value markets create for

society. Welfare analysis calculates the consumer surplus, producer surplus,

government revenue, and total or social surplus generated by a particular market and
evaluates the gain or loss in surplus or value as a result of changes in economic
conditions or government policies.
7. Break-even Analysis
Breakeven analysis is used to determine when your business will be able to cover all
its expenses and begin to make a profit. It is important to identify your startup costs,
which will help you determine your sales revenue needed to pay ongoing business
expenses.
8. Total Productive Maintainance
In industry, total productive maintenance(TPM) is a system of maintaining and
improving the integrity of production and quality systems through the machines,
equipment, processes, and employees that add business value to an organization.

Section B& C
4. Managerial Economics
Managerial economics is the "application of the economic concepts and economic analysis to the
problems of formulating rational managerial decisions".[1] It is sometimes referred to as business
economics and is a branch of economics that appliesmicroeconomic analysis to decision methods of
businesses or other management units. As such, it bridges economic theory and economics in
practice.[2] It draws heavily from quantitative techniques such as regression
analysis, correlation and calculus.[3] If there is a unifying theme that runs through most of managerial
economics, it is the attempt to optimize business decisions given the firm's objectives and given
constraints imposed by scarcity, for example through the use of operations research, mathematical
programming, game theory for strategic decisions,[4] and other computational methods.[5]
Managerial decision areas include:

assessment of investible funds

selecting business area

choice of product

determining optimum output

sales promotion.

5.
Law Of Demand
In economics, the law of demand states that, all else being equal, as the price of a product
increases (), quantity demanded falls (); likewise, as the price of a product decreases (),
quantity demanded increases (). In simple terms, the law of demand describes aninverse
relationship, and an elasticity, between price and quantity of demand. There is a negative
relationship between the quantity demanded of a good and its price. The factors held
constant in this relationship are the prices of other goods and the consumer's income.
[1]
There are, however, some possible exceptions to the law of demand (see Giffen
goods and Veblen goods).
6. Demand Forecasting
Demand forecasting is the art and science of forecasting customer demand to drive holistic
execution of such demand by corporate supply chain and business management. Demand
forecasting involves techniques including both informal methods, such as educated guesses, and
quantitative methods, such as the use of historical sales data and statistical techniques or current
data from test markets. Demand forecasting may be used in production planning, inventory

management, and at times in assessing future capacity requirements, or in making decisions on

whether to enter a new market
Demand forecasting is predicting future demand for the product. In other words it refers to the
prediction of probable demand for a product or a service on the basis of the past events and
prevailing trends in the present.

7. Monoploistic Competition
Monopolistic Competition

The model of monopolistic competition describes a commonmarket

structure in which firms have many competitors, but each one sells a slightly
different product. Monopolistic competition as a market structure was first
identified in the 1930s by American economistEdward Chamberlin, and
English economist Joan Robinson.
Many small businesses operate under conditions of monopolistic competition,
including independently owned and operated high-street stores and
restaurants. In the case of restaurants, each one offers something different
and possesses an element of uniqueness, but all are essentially competing for
the same customers.
9. Indeference Curve
An indifference curve is a graph showing combination of two goods that give the
consumer equal satisfaction and utility. Definition: An indifference curve is a graph
showing combination of two goods that give the consumer equal satisfaction and utility.