What is meant by predatory dumping? How likely is it for this to occur in the United States? Discuss
What will be an ideal response?
Predatory dumping refers to a situation where a foreign firm charges a price that is so low it is able to capture the local market. Once obtained, the foreign firm then acts like a monopolist. Predatory dumping is extremely unlikely in the United States. When the foreign firm raises its price, nothing prevents new (possibly local) firms from entering the market. Moreover, the U.S. market is so large, it is doubtful that any foreign monopolist could satisfy U.S. demand.
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Refer to Scenario 5.8. The value to Icarus Airlines of complete information is
A) $40 million. B) $90 million. C) $115 million. D) $120 million. E) $125 million.
To find its profit-maximizing output level, a firm should operate where
a. AVC = MC. b. MC = MR. c. TFC = TVC. d. AFC = AVC.
Spending on imports should get ________ GDP, and spending on exports should be ________.
A. subtracted from; included B. included in; subtracted C. included in; included as well D. subtracted from; subtracted as well
A profit-maximizing producer seeks to
A. Minimize average total costs. B. Maximize profit per unit. C. Minimize marginal cost. D. Maximize total profit.