Suppose that a Canadian brewery sells beer in both Canadian and American markets and that all prices are in Canadian dollars.The Canadian domestic price is $17.00 per case while in the American market it sells the same case for $13.00.The average total cost of production is $11.50.This brewery could be accused of

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Dumping is the practice of selling a product in a foreign market at a lower price than it is sold for in the domestic market, which can harm domestic producers in that foreign market. This brewery is selling the same case of beer for a lower price in the American market, which could be seen as dumping and potentially harmful to American beer producers.

Suppose That a Canadian Brewery Sells Beer in Both Canadian