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ENGINEERING ECONOMICS

Engineering Economics
Ratio analysis of a construction firm is used for analysis by:

Firm's management
Financial analysts
Banks of the firm
Share holders

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Engineering Economics
A farmer selling eggs at 50 pesos a dozen gains 20%. If he sells the eggs at the same price after the costs of the eggs rises by 12.5%, how much will be his new gain in percent?

0.0665
0.0689
0.0612
0.0658

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Engineering Economics
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

Unstable economy
The initial depreciation is low
Rate of interest cannot be exactly determined
The initial deprecation is high

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Engineering Economics
“When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output”. This statement is known as the:

Law of supply
Law of demand
Law of supply and demand
Law of diminishing return

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Engineering Economics
“Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the:

Law of supply and demand
Law of supply
Law of diminishing return
Law of demand

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