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The expansion and development of a private business: an application of vertical integration theory.
- Article from:
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Business History
- Article date:
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October 1, 1991
- Author:
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Copyright informationCOPYRIGHT 1991 Frank Cass & Company Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The neo-classical view of the firm held that its growth beyond a certain scale was improbably as a result of the assumption of declining returns built into the theory of monopolistic competition.[1] In recent years institutional economists have rejected this historically inaccurate view of the firm and offered explanations of the growth of the modern large scale corporation and its role in providing a competitive structure for the economy. Their research has focused upon vertical integration as the predominant form of growth for the modern corporation.[2] A wide range of more general or specific explanations of vertical integration have been offered. Although some of them are ...
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