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Anerjee Economics

The document discusses the role of managerial economics in aiding decision-making for managers, emphasizing the importance of optimizing resource allocation in both personal and professional contexts. It outlines a six-step process for making economic decisions and highlights key economic factors such as ROI, inflation, and depreciation that engineers must consider. The conclusion reinforces the need to evaluate costs and benefits to select the most economically viable options for engineering projects.

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sharonya.banerjee5
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22 views6 pages

Anerjee Economics

The document discusses the role of managerial economics in aiding decision-making for managers, emphasizing the importance of optimizing resource allocation in both personal and professional contexts. It outlines a six-step process for making economic decisions and highlights key economic factors such as ROI, inflation, and depreciation that engineers must consider. The conclusion reinforces the need to evaluate costs and benefits to select the most economically viable options for engineering projects.

Uploaded by

sharonya.banerjee5
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CA1 ASSIGNMENT

NAME: SHARONYA BANERJEE


UNIVERSITY ROLL
NUMBER:13031423049
SUBJECT NAME : ECONOMICS
FOR ENGINEERS
SUBJECT CODE:HSMC301
REGISTRATION NUMBER
:231300110067
SEMESTER :THIRD
TOPIC:ECONOMIC DESCISIONS
Introduction
Managerial economics helps managers make optimal decisions by
understanding economic concepts. Decision making involves choosing between
alternatives and is important for both personal and professional life. Managers
face decision problems like pricing, capacity, and resource allocation due to
scarce resources and unlimited wants. Economics helps maximize the use of
limited resources to satisfy wants. Managerial economics aids decision making
and planning to efficiently achieve business objectives.
How are economic decisions made?
• Step 1 : Define the problem
• Step 2 : Gather information and resources
accordingly
• Step 3. : List options and compare them
• Step 4 : Make a decision accordingly
• Step 5: Make a plan to reach your goal
• Step 6: Evaluate the effectiveness of the
descion
Application in Engineering field
Economic decision making in engineering projects involves optimizing resource allocation to
meet project objectives while minimizing costs. Here are some examples of economic factors
that engineers consider when making decisions are as follows :
Return on investment (ROI):The ratio of money gained or lost on an
investment relative to the amount of money invested
Inflation :An important economic indicator that provides insight into where prices
are moving, which can signal if the economy is growing or slowing
Depreciation :An important factor in industrial engineering that affects the
profitability, cash flow, and tax liability of a project or a firm
Conclusion
Engineering economic decision making is the process of evaluating the costs
and benefits of different options for engineering projects and selecting the
most economically viable one. The goal is to determine if the benefits of a
proposed solution outweigh its costs from the decision maker’s perspective.
Reference

Book
Economics for Engineers Bhatia and Maheshwari
Website
[Link]
[Link]
[Link]

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