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It has been a long time since Karina stopped bullying other children at school. Her parents simply explained to Karina that every time she bullies a child, she must pay a price for the bullying incident. Karina loves music and has an extensive CD collection; therefore, the cost of a bullying incident is three CDs from her collection. It did not take Karina long to determine that it was too high of a price to pay for her behaviour, so the bullying stopped. This response cost method of modifying behaviour is a
Market Entry
The process by which a new competitor enters an existing market, often involving overcoming barriers to entry.
AVC
Average Variable Cost, which is the total variable costs of production divided by the quantity of output produced.
Economic Profits
Profits calculated by subtracting both explicit and implicit costs from revenue; also known as supernormal profits.
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