________ Occurs When a Foreign Firm Sells Its Exports at a Lower

question 96

Multiple Choice

________ occurs when a foreign firm sells its exports at a lower price than its cost of production.

• A)Comparative advantage
• B)Learning-by-doing
• C)A tariff
• D)An infant industry
• E)Dumping

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Definitions:

Marginal Social Cost

The total cost to society of producing one additional unit of a good, including both private costs and externalities.

Pollution

The presence in or introduction into the environment of substances or things that have harmful or poisonous effects.

Marginal Social Benefit

The supplementary gain for the general population derived from the consumption of one more unit of a good or service.

Marginal Social Cost

The comprehensive expense to society for creating another unit of a product or service, encompassing both individual costs and any external factors.