When a Firm Sells Its Good Abroad Below the Cost

question 278

Multiple Choice

When a firm sells its good abroad below the cost of producing the good the firm is

• A) using the concept of comparative advantage.
• B) dumping.
• C) taking advantage of the infant industry argument.
• D) taking advantage of absolute advantage.

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Definitions:

Industry Supply Curve

A graph showing the quantity of a good that all producers in an industry are willing to sell at different prices.

Market Price

The price at which a good or service is bought and sold in a competitive marketplace, determined by supply and demand.

Product Differentiation

The technique of making a product or service stand out from others in the industry to boost its desirability to a designated target market.

Americans

Refers to the citizens or inhabitants of the United States of America.