microeconomics report on fiat

Topics: Economics, Opportunity cost, Automotive industry Pages: 2 (520 words) Published: December 2, 2013
CNN-Money assignment
Presented to Prof. Dr. Iman Zaky
By Dr. Adham ABulnour

Article: Fiat 500L: A really big tiny car
The new larger Fiat is still very small but somehow manages to have a giant-sized interior. http://money.cnn.com/gallery/autos/2013/08/28/fiat-500l/index.html?iid=HP_Highlight

Microscale or Macroscale economy?
The article deals with the microscale economics of the Fiat Corporation private cars industry with a special focus on the Fiat 500 series. Macroscale economy ramifications on the global automobile industry might propagate Fiat competitors to redesign their compact cars to become ergonomically more spacious.

What, how and for whom?
The article is locked upon one of the latest additions to the Fiat 500 family; the 500 L (large). This model features 4 passenger doors (instead of the 2 passenger doors of the traditional Fiat 500) and is 2 feet longer than its predecessor allowing a 20% increase in length and 40% increase in interior space.

Through ingenious design and meticulous detailing, Fiat's factors of production (land, labor, capital and entrepreneurship) were put to action to conceive this latest addition by the company.
The Fiat 500 L is designed for the traditional Fiat 500 fans who are seeking a more ' saloon' feel to the car. The fiat 500 L target customers are those who would perceive this model as an ' enjoyable' driving experience disregarding the sense of ' wobbling' on the road that can be generated by the car's extended length and soft suspension.

Self-interest Vs. social-interest?
Needless to say, any physical enlargement in a specific car model means more materials and energy (consumables in general) being used and depleted. One might assume, at the first gaze, that Fiat is only seeking its self -interest by augmenting the range of its private cars family disregarding the impact of excess material usage and energy consumption on the ecologic balance. In other words, Fiat can be criticized...
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