Study-unit ECONOMIC PRINCIPLES

Course name	Mechanical engineering
Study-unit Code	70026680
Curriculum	Gestionale
Lecturer	Andrea Fronzetti Colladon
Lecturers	Andrea Fronzetti Colladon
Hours	54 ore - Andrea Fronzetti Colladon
CFU	6
Course Regulation	Coorte 2021
Supplied	2021/22
Learning activities	Caratterizzante
Area	Ingegneria gestionale
Sector	ING-IND/35
Type of study-unit
Type of learning activities	Attività formativa monodisciplinare
Language of instruction	Italian
Contents	Foundations of microeconomics and investment analysis. Negotiation strategies.
Reference texts	- Campisi, D. & Costa, R. Economia applicata all'ingegneria. Carocci editore. - Pindyck, R. & Rubinfeld, D. Microeconomics (8th ed. or newer), Prentice Hall International. - La Bella, A. & Capece, G. Manuale di Direzione d'Impresa, Franco Angeli. (ONLY THE CHAPTER NAMED "La negoziazione organizzativa") All the materials made available by the teacher on the Unistudium platform are part of the course and their study is necessary to pass the final exam. They are provided in addition to the textbooks listed here.
Educational objectives	This course introduces the foundations of microeconomics and investment analysis. Students will learn how to evaluate investment projects for profitability and risk. They will also study the behavior and interactions of individuals and firms in making decisions regarding the allocation of scarce resources. Students will analyze the market mechanisms that establish relative prices of goods and services and allocate limited resources among alternative uses. The course also includes a seminar about negotiation strategies.
Prerequisites	There are no mandatory classes to undertake before this one
Teaching methods	Lectures, hands-on tutorials and case studies. Class attendance is highly recommended.
Other information	More information available on the university web platform Unistudium (look at the course page)
Learning verification modality	Written test covering the topics included in the course program. The test contains both theory questions and questions requiring computational skills.
Extended program	Cash flow diagrams. Financing and Investments. Inflation. Projects and Investment alternatives. Time value of money. Interest rate, interest earned. Opportunity cost. Simple interest. Compound interest. Nominal and effective interest rates. Cash Flows Equivalence. Formulas and factors. Bases for comparison of alternatives. Present Worth. Future Worth. Future Worth and Present Worth with simple interest. Annual Equivalent. Future Worth, Annual Equivalent and Present Worth: a comparison. Payback Period. Incremental Investment. Internal rate of return. Minimum Attractive Rate of Return. Alternatives with unequal lives. Choice of not investing. Project Balance. Preliminaries on Micro- and Macro-economics. Real vs nominal prices. Consumer and producer price indexes. Supply and Demand curves. The Reserve Price. Shifting of Supply and Demand curves. The Market Mechanism. Market Clearing Price. Price Elasticity of Demand. Elasticities of Supply and Demand. Point, arc and cross-price elasticities. Other elasticities. Long-run and Short-run elasticities. World oil market example. Consumer behavior and preferences. Indifference curves. Perfect complements and substitutes. Marginal rate of substitution. Regular preferences. Utility and utility functions. Marginal Utility. Utility functions (also for perfect complements and substitutes). Almost linear preferences. Budget line. Changes in income and prices. Consumer choice and maximization of consumer satisfaction. Consumer choice in the case of perfect complements and substitutes. Production. The production function. Average and marginal products. Isoquants. Production in the short and long run. Marginal rate of technical substitution. Costs of production in the long and short run. Shapes of the cost curves. Isocost curves. Choice of optimum inputs. Perfectly Competitive Markets. Marginal Revenue, Marginal Cost and Profit Maximization. Output choices in the Short- and Long-run. Prices to enter and exit the market. Single firm demand and supply curves. Industry demand and supply curves. Exercises. Negotiation strategies.