Selling a Product in a Foreign Nation at a Price

question 75

Multiple Choice

Selling a product in a foreign nation at a price less than its cost of production is called

• A) infant- industry exploitation.
• B) absolute advantage.
• C) net exporting.
• D) dumping.

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Definitions:

Producer Surplus

Producer surplus is an economic measure of the difference between the amount a producer is paid for a good compared to the minimum amount they would accept to produce that good.

Market Price

is the current price at which an asset or service can be bought or sold in the open market.

Marginal Cost

The elevation in aggregate expenditure triggered by the output of one supplementary unit of a good or service.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.