13.3 Closing considerations on engineering and economics

Question 1

With what in engineering economics concerned?

Answer 1

Engineering economics is concerned with understanding the economic or financial implications of engineering decisions.

Question 2

What are the engineering decisions that play into engineering economics?

Answer 2

The engineering decisions that figure into engineering economics include:

• choosing among alternatives
  
  • i.e. cost-benefit analysis
• deciding if or when to replace machines or other systems
  
  • i.e. replacement analysis
• predicting the full costs of devices over the period of time that they will be owned and used
  
  • i.e. life cycle analysis

Question 3

Of what is engineering economics a part?

Answer 3

Engineering economics, like prototyping or simulation, is a form of engineering modeling. Engineering economics should not be the only factor influencing a designer.