MEE2034 Industrial Economics L T P J C

Pre-requisite : MEE1024 3 0 0 0 3
Module Topics L Hrs SLO
1 Introduction to Economics; Definitions, Engineering Costs &
Estimating; Scope, Difference between Microeconomics &
Macroeconomics. Theory of production; production function, meaning, 6 1,2,9
factors of production (meaning & characteristics of Land, Labour, capital
& entrepreneur), Law of variable proportions & law of returns to scale.
2 Cost; meaning, short run & long run cost, marginal cost, opportunity
cost. break even analysis – margin of safety – angle of incidence and 1,2,
6
multi product break even analysis -Effect of changes in volume, selling 9,17
price, fixed cost and variable cost.
3 Determinants of price – Pricing under different objectives – Pricing
1,2,
under different market structures – Price discrimination – Pricing of Joint 6
9,17
products – Pricing methods in practice.
4 Estimating models and cash flow diagram. Time value of money,
1,2,
equivalence, compound interest, Uniform series and compound interest 6
9,17
factor, Arithmetic & geometric gradient
5 Markets; meaning, types of markets & their characteristics ( Perfect
Competition, Monopoly, Monopolistic Completion, Oligopoly)National
1,2,
Income; meaning, stock and flow concept, NI at current price, NI at 6
9,17
constant price, GNP, GDP, NNP,NDP, Personal income, disposal
income.
6 Current assets and liability decisions – Estimation of working capital
requirements – Management of accounts receivable – Inventory – Cash – 1,2,
6
Inventory valuation methods. Significance of capital budgeting – payback 9,17
period – present value method – Accounting rate of return method.
7 Depreciation- Introduction, Straight line method of depreciation,
declining balance method of depreciation-Sum of the years digits method 1,2,
of depreciation, sinking fund method of depreciation/Annuity method 7
9,17
of depreciation, service output method of depreciation.
8 Contemporary Discussion 2 18
Total Lecture 45
Hours
# Mode: Flipped Class Room, [Lecture to be videotaped], Use of physical and
computer models to lecture, Visit to Industry and study the metallurgical
equipment, Min of 2 lectures by industry experts
Text Book
1. Newman, Donald G., Eschenbach, Ted G., and Lavelle, Jerome P. (2012). Engineering
Economic Analysis. New York: Oxford University Press.
Reference Books
1. V.L.Mote, Samuel Paul and G.S.Gupta (2007), Managerial Economics – concepts and cases,
TMH, 40th reprint
2. A.RamachandraAryasri and V.V.Ramana Murthy (2004), Engineering Economics and Financial
Accounting”, TMH, New Delhi
3. Yogesh Maheshwari (2005), Managerial Economics”, second edition, PHI
4. R.Panneerselvam (2013), Engineering Economics, 2nd Edition, PHI
Mode of Evaluation Digital Assignments /Surprise Test /CATS/FAT
Recommended by the Board of Studies on: 03.03.2016
Date of Approval by the Academic Council: 18.03.2016
Compiled by Prof. R. Ramanujam