Learning Outcomes

After successfully completing this chapter, learners will be able to:

1. Describe and explain various cost types and distinguish among them.

2. Explain various types of price and demand relationships.

3. Develop mathematical expressions, relationships, or equations for:

   1. 1. Price and demand

      2. Total revenue function

      3. Total profit function

      4. Demand levels that result in maximum revenue, maximum profit, and breakeven points

4. Solve real-world, scenario-based problems using mathematical expressions and equations.

5. Use MS Excel to:

   1. Develop tables and graphs for fixed cost, variable cost, total cost, unit price, total revenue, and total profit across a range of demand levels

   2. Identify maximum profit, maximum revenue, and breakeven points

   3. Analyze various future scenarios by changing key economic design parameters, such as 

      1. fixed cost,

      2. variable cost, and 

      3. unit price

6. Analyze and evaluate a variety of economic scenarios.

7. Design, develop, and create new, profitable economic business models.

8. Test and assess their understanding through a wide range of question types, including those commonly found on standardized exams such as the Professional Engineer (PE) and Fundamentals of Engineering (FE) exams:

   1. Written responses

      1. Both short and long formats

   2. Multiple choice questions

9. Finally, become an independent learner by taking responsibility for your own continuous learning, development, and growth.