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A Firm That Faces Problems of Falling Sales and Excess

Question 104

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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