Which Criterion Must Be Met to Identify If an Imported

question 177

Multiple Choice

Which criterion must be met to identify if an imported product is being
Dumped on the home country?
I.The foreign firm sells the product at a lower price in the home
Market.
II.The foreign firm sells the product below average cost in the home
Market.
III.The foreign firm raises the price in the home country.

• A)I
• B)II
• C)I or II
• D)I, II, and III

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Definitions:

Economic Profit

The difference between total revenues and total costs, including both explicit and implicit costs, representing the additional benefit over the next best alternative.

Market Price

The price of a commodity when sold in a competitive marketplace, reflecting the supply and demand balance.

Units

Basic measures or quantities of a product, service, or variable used in economic analysis or transactions.

Average Fixed Cost

The average fixed cost is the total fixed expenses of a business divided by the number of units produced, showing how much fixed costs contribute to each unit of production.