A Company Produces a Hand-Held Global Positioning System (GPS) Used

question 15

Essay

A company produces a hand-held global positioning system (GPS) used for hiking and sells it for $350 per unit in the United States. The same GPS unit is also sold in Europe at a price of $250 Euros (the equivalent of about $290). Several competing European producers have charged the company with dumping GPS units at unfairly low prices in Europe. What economic defense would the company's lawyer submit for the company's pricing practice?

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Definitions:

Respond

To react or reply to something, typically as a result of external stimuli.

Matching Law

A theory stating that the proportion of responses directed towards one alternative corresponds to the proportion of reinforcements received from that alternative.

Shortest Delay

The minimal time interval between a signal and its associated outcome, often discussed in the context of learning and reaction times.

Responding

The act of reacting to a stimulus or environment in a way that is observable.