Dumping goods is profitable whenever:
a. the firm does not get caught.
b. the firm can hire illegal workers to process the production.
c. the foreign market price (after transportation costs) is higher than marginal cost but lower than the home price.
d. the foreign firm eventually closes because it cannot compete.
Ans: c. the foreign market price (after transportation costs) is higher than marginal cost but lower than the home price.
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On Naomi’s pig farm, Naomi hires all the labor used, grows all the grain fed to the pigs, and owns the barn. The costs used to calculate the total cost curve include
A. only the cost of labor. B. only the cost of labor and the cost of grain, which is completely consumed in the period in which it is grown. C. only the variable cost of growing grain. D. the cost of labor, the cost of growing grain, and the opportunity cost of the barn.
According to the graph shown, if this economy were an autarky, consumers would get area______ in consumer surplus:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. A.
B. ABC.
C. ABCDE.
D. ABCDEFG.
A middleman is a person who
a. specializes in arranging trades and selling, guaranteeing, and servicing items traded. b. acts as a middle person between the top management of a business firm and the hourly employees who actually produce the goods and services. c. adds to the seller's expense and the buyer's buying price without providing a service to either. d. levies a tax on private sector activity and uses the funds to support government activities.
When an investment project generates output that is valued more highly than the value of the resources required for its production,
A) entrepreneurs seeking profit will have little incentive to undertake such projects. B) entrepreneurs will have to be subsidized by the government if they are going to earn a profit. C) it will be unprofitable to undertake such a project. D) undertaking the project will create wealth.