CPB/MME 341 Module 1 – Study Guide, Lecture Notes, and Exam Preparation Material

CPB/MME 341 Module 1 – Study Guide, Lecture Notes, and Exam Preparation
Material


Microeconomics - correct answer ✔✔the study of individuals, households, and firms behavior
in decision making and allocation of resources



Macroeconomics - correct answer ✔✔a branch of economics dealing with performance,
structure, behavior, and decision-making of an economy as a whole



Engineering economics - correct answer ✔✔a subset of economics concerned with the use and
"...application of economic principles" in the analysis of engineering decisions



Principles of Engineering Economics - correct answer ✔✔1. Money has a time value

2. Equivalence of money

3. Make economically justified decisions

4. Choose the mutually exclusive alternative that maximized economic worth

5. Marginal revenue must exceed marginal cost

6. Risks and returns are positively correlated



Fixed Cost (FC) Definition - correct answer ✔✔costs that are independent of units of a product
manufactured



Variable Cost (VC) definition - correct answer ✔✔Dependent on the units produced



Incremental or Marginal Cost - correct answer ✔✔increase in the cost as one additional unit of
product is manufactured