A Firm That Faces Problems of Falling Sales and Excess

question 36

Multiple Choice

A firm that faces problems of falling sales and excess productive capacity might resort to international dumping if it:

• A) Can charge higher prices in markets that are elastic to price changes
• B) Earns revenues on foreign sales that at least cover variable costs
• C) Can sell at that price where domestic and foreign demand elasticities equate
• D) Is able to force foreign prices below marginal production costs

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