Engineering Economic Analysis
Learning Objective:As an intermediate microeconomics course for engineers, the goal is to provide graduate students in Industrial Engineering with an overview of the key concepts in microeconomics.
Students who have already taken an intermediate microeconomics course may find parts of this course repetitive. The course will cover the following topics: mathematics of optimization, consumer choice and demand theory, demand estimation, production and the theory of the firm, an introduction to cost accounting, and market structures.
Topics Covered:Introduction; Mathematics of Optimization--Unconstrained Optimization: First and Second Order Conditions, Constrained Optimization: Lagrangian Multipliers and Kuhn-Tucker Conditions; Consumer Choice and Demand Theory--Utility Functions, Utility Maximization and Demand Functions; Forecasting and Methods from Marketing Research--Demand Estimation, Measuring Consumer Preferences; Production and Supply--Production Functions, Costs of Production, Profit Maximization and Supply; Accounting and Costs--Basic Concepts and Classification of Costs, Activity Based Costing; Market Structures--Perfect Competition, Monopoly, Oligopoly, Game Theory Models of Pricing.
Applied / Theory:
Web Content:All handouts, assignments and homework solutions, except for the case studies, will be posted on the course web site. Students must download these assignments.
Homework:Six to eight assignments (problem sets), assigned roughly every two weeks, may be downloaded from the course web page; students will usually have about two weeks to complete the assignments; will count for approximately 15% of the final grade.
Projects:Required, not job-related. There will be two case studies assigned during the semester. Students will work in teams of 2-4 students to complete each case study. Each team will be required to prepare and submit a formal written report on the case (approximately 5 pages in length). The case studies will count for approximately 25% of the final grade.
Exams:One midterm exam and one comprehensive final exam.
Textbooks:Official textbook information is now listed in the Schedule of Classes. NOTE: Textbook information is subject to be changed at any time at the discretion of the faculty member. If you have questions or concerns please contact the academic department.
Required--Walter Nicholson, Christopher Snyder "Microeconomic Theory: Basic Principles and Extensions," Cengage Learning, 2011, 11th ed., ISBN 9781111525538.