When a Firm Dumps a Product in Another Country, It

question 34

Multiple Choice

When a firm dumps a product in another country, it sells it at

• A)a lower price in the foreign market, where the demand is more price-inelastic compared to the home market, where it is more elastic.
• B)a higher price in the foreign market, where the demand is more price-elastic compared to the home market, where it is less elastic.
• C)a lower price in the foreign market, where the demand is more price-elastic compared to the home market, where it is less elastic.
• D)a higher price in the foreign market, where the demand is more price-inelastic compared to the home market, where it is more elastic.
• E)the same price in the foreign market, where the demand is less price-elastic compared to the home market, where it is more elastic.

---

Definitions:

Business Entities

Business entities refer to legally recognized organizations designed to provide goods or services.

Owners

Owners are individuals or entities that hold legal title to assets, businesses, or property.

Business Entity Principle

The accounting concept that separates the transactions of a business from those of its owners or other businesses.

Operating

Pertaining to the core business functions and activities of an organization that contribute to the production of goods or services.