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Unformatted text preview: C. The business cycle 2 1. Expansion and contraction; A boom and bust @ a. Boom: increased demand C > increased prices C > increased production b. Bust: overcapacity C > price decline C > wage cuts C > unemployment C > business failure III. Business responses to the mass market and the intensification of market competition: A. The emergence of big business 1. Economies of scale a. Cost of production per unit decreases as the scale or size of operations increases. 2. Vertical integration and business concentration 1. Buying out facilities forward and backward long a chain of production. a. Standard Oil 3. Horizontal integration and business concentration a. Coordinated activity by rivals in competing industry to stabilize prices, output, and market share 1. The cartel (loosest form of combination) 2. The A trust @ (tighter) 3. The acquisition (tightest) IV. The challenge to the Jeffersonian republican ideal....
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This note was uploaded on 04/02/2008 for the course POL SCI 149 taught by Professor James during the Winter '08 term at UCLA.
- Winter '08
- Political Science