A foreign firm sells its product in the United States for $50 per unit. Its cost per unit is $60. Based on this information, we can assume that the

Question

Quizplus · Accepted Answer

The fact that the foreign firm is selling its product in the United States at a price lower than its cost per unit raises the possibility of dumping - selling goods below cost in a foreign market to gain market share or eliminate competition. However, we cannot definitively conclude dumping without further investigation into the pricing strategies and market behavior of the firm. The other answer choices may be true or false, but they cannot be inferred from the given information.

A Foreign Firm Sells Its Product in the United States