A Firm Charges a Lower Price in Another Country Than

question 50

Multiple Choice

A firm charges a lower price in another country than it does for the same product in its home country may be a simple case of price discrimination. (For example, "international editions" of textbooks are much lower than the American edition.) To prove dumping, it must be shown that

• A) the consumers in the home country have a lower price elasticity of demand than consumers in the foreign country.
• B) the government in the home country did not subsidize production of the good.
• C) the item can be produced in the foreign country.
• D) the cost of production is higher than the price the firm charges for the good.
• E) All of these could be used to prove dumping.

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Definitions:

Cohabitation

Living together in a sexual relationship without being married.

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Two individuals involved in a romantic relationship, characterized by emotional and physical intimacy.

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A close, familiar, and affectionate personal relationship with another person that involves a deep level of emotional connection.

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Describes the relationships people have with others and the resulting sense of belonging and support obtained through these interactions.