Final answer:
Economic design begins with brainstorming alternative solutions and shaping them into viable designs. Economists, like carpenters, should leverage their foundational skills to analyze new and unique issues. Cost estimation through mathematical models is pivotal in assessing the feasibility of different approaches.
Step-by-step explanation:
The first rule of economic design is to brainstorm alternative solutions for the design problem. This involves generating a wide variety of ideas or possible solutions which can come from multiple sources. The ideas then need to be shaped into a viable component, system, or process, taking into account the requirements and constraints present. It's essential to explore these possibilities comprehensively, to understand their characteristics, and to assess the likely advantages and disadvantages each might offer.
When facing a new challenge without a specific model for analysis, an economist should approach the situation much like a carpenter who encounters an unfamiliar task. A carpenter would typically assess the available tools and use their foundational skills to craft a solution. Likewise, an economist would draw upon their expertise and the principles of economics to develop an analytical approach that fits the issue.
During the design process, creating mathematical models to estimate costs for various approaches is crucial. These models are not only used for cost estimation but also help to establish a connection between the scientific principles and the economic feasibility of implementation, taking into account materials, fabrication, operation, and maintenance costs.