SWOT Analysis of Hyundai Motors

SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of Hyundai Motors Company. It was founded by Chung Ju-yung in December,1967. It has been operating in automotive industry and offering Automobiles, Cars, commercial and engines products to its worldwide...

Production Function

A production function indicates the highest output Y that a firm can produce for specific combination of input. We have many factors of production used as inputs but for simplicity we will focus only on labor and capital as a factor of production. Keeping this...

Production Decisions of a firm

Now we have demand side of the market and the supply side. From the word supply we do understand very easily that we are going to discuss about the or examine the behavior of Producers. We will see how firms can produce efficiently and how their costs change with the...

Network Externalities

Much of what basic microeconomics discusses is that a demand for a good is independent of somebody elses demand for that same good. For Example,  Adam’s demand for a new car depends on Adam’s tastes and income, the price of the car and perhaps the price of other...

Income and Substitution Effect

A fall in the price of a Good has two effects: Consumers will buy more of a good that is cheaper and less of the good which has become expensive. This consequence to a change in the price of a relative good is called the Substitution effect. Secondly When a good...

What is Economic Growth ?

Economic Growth Takes Place when There is Increase in the national Income of a Country Or Increase in Country’s Productive Capacity To understand the concept of Economic Growth, we use many tools like that of the  Production possibility Curve. Let us first...

Financial Crisis of 2008 and 2009

In 2008 the United States went through a Financial crisis. Many of these events were said to be the reflections of 1930’s great depression that brought fear to many individuals considering it’s a severe downturn in economic transactions and rapid rise in unemployment....

Price Index

Price Index A Price Index is a measure of the average level of prices. So when we see a news on the TV that “Inflation is rising”, they are really reporting the movement of a Price Index. A price index is a weighted average of the price of a basket of goods and...

Business Cycle

One important factor of business fluctuations is changes to aggregate Demand. Like I said before, any changes made to consumption, investment or government expenditure will change aggregate demand which as obvious will have fluctuations in Business cycle. Though we...