Engineering Economy # 1

This occurs in a situation where a commodity or service is supplied by a number of vendors and there is nothing to prevent additional vendors from entering the market.

• Elastic Demand

• Perfect Competition

• Monopoly

• Oligopoly

The reduction in the level of national income and output, usually accompanied by a fall in general price level.

• Devaluation

• Inflation

• Depletion

• Deflation

The total cost of importing products. This includes the purchase price, transport, insurance, and associated taxes.

• Sunk Cost

• Franchise

• Direct Cost

• Landed Cost

An organization that aims to block the entry of a new corner.

• Monopoly

• Cartel

• Competitor

• Proprietor

When free competition exists, the price of a product will be that value where supply is equal to the demand.

• Law of Supply and Demand

• Law of Supply

• Law of Demand

• Law of Diminishing Returns

The amount which a willing buyer will pay to a willing seller for a property when neither one is under compulsion to buy or sell.

• Book Value

• Market Value

• Fair Value

• Salvage Value

Exclusive right granted by the government for the manufacture, use and sale of a specific product.

• Patent

• Franchise

• Monopoly

• Monopsony

The place where buyers and sellers come together.

• Business

• Market

• Recreation Center

• Buy and Sell Section

These are products or services that are required to support human life and activities that will be purchased in somewhat the same quantity even though the price varies considerably.

• Utilities

• Necessities

• Luxuries

• Producer Goods and Services

A distinct legal entity which can practically transact any business transaction that a real person could do.

• Sole Proprietorship

• Enterprise

• Partnership

• Corporation