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Imagine That You Have a Headache

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Imagine that you have a headache. You take two aspirin and notice that in a few minutes, your headache starts to subside. Because the aspirin effectively eliminated your headache, you would probably be more likely to take them again the next time you have a headache. This example best demonstrates the process of


Definitions:

Collusive Agreements

Secret or illegal cooperation or conspiracy, especially between businesses, in order to deceive or gain an unfair advantage.

Barrier To Entry

Economic, procedural, regulatory, or technological factors that obstruct or restrict the ability of new competitors to enter and operate within a market or industry.

Market Entry

The process or strategy by which a company enters a new market or industry.

Average Cost

The total cost of production divided by the number of units produced, often used to determine the efficiency of production.

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