1) Assume you are given job in a project. Your task is to analyze that project and submits your report.
a) What steps you will follow for this?
b) How can you analyze the project?
c) How can Eng. Economic help you in this regard?
d) How can you justify your decision?
e) Is Eng. Economic important for practical Eng. Problems?
2) Government of Pakistan is thinking about following project.
a) Installation and building a windmill at coastal area.
b) Construction of new airport at Islamabad.
c) Building a Yadgar for Banazir at Fowara Chock at Rawelpindi.
d) Building a new world class park at the bank of Sumbli dam.
e) How you will analyze these projects? (Note: your analysis must be base upon suitable justification)
3) Let you are given a demand function for a project P=100-0.5D and total cost (CT) of the project 1000+2D2 per year.
a) Determine the revenue of the project
b) Determine the breakeven point.
c) Determine the value of D that maximizes profit
d) Find the maximum profit that can be derives from this project.
e) Explain the Economic justification.
f) find the domain of the demand
4) A company produces circuit boards used to update outdated computer equipment. The company has to pay Rs.4, 000/- per month regular and Rs.50/- per circuit board. The market price for this circuit board is P=Rs.120-0.05D. Maximum output of the plant is 4000 units per month.
a) Find CT, RT
b) Determine optimum demand for this product.
c) At what volumes does breakeven point occur?
d) What is the maximum profit per month?
e) What is the company’s rang of profitable demand?
f) Explain the Economic justification.
5) Explain the differences between following with at least 2 examples.
a) Indirect and direct cost
b) Cash and book cost
c) Sunk and opportunity cost
d) Variable and incremental cost
e) Necessities and wants
f) Maximum profit and breakeven profit
g) Economics profit and accounting profit.