Final answer:
Fast-cycle markets are characterized by volatility and continuous innovation, necessitating businesses to remain agile to survive rapid market changes and intense competition. Governments intervene to mitigate severe economic downturns in these markets. Companies in fast-cycle markets focus on building strong brands and are adaptable to survive.
Step-by-step explanation:
Fast-cycle markets are often described as volatile and innovative. These markets are characterized by rapid changes, swift advancements in technology, and intense competitive dynamics. They exhibit patterns of short-term characteristics, are unstable and short term, and rely on constant innovation to maintain a competitive edge. In contrast to slow-cycle markets, which are long term, stable, and not easily changed, fast-cycle markets require businesses to be agile and adaptable.
The nature of fast-cycle markets means that they can experience periods of significant growth but also face depressions with high unemployment and inflation, impacting economic growth. To prevent the severe effects of economic downturns, governments may intervene by adjusting interest rates to encourage spending, reducing the likelihood of prolonged recessions and depressions. Industries within fast-cycle markets usually have small economies of scale compared to the market demand, making it necessary for companies to build strong brand names and reputations to remain competitive.