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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This brewery could be accused of dumping, which is the practice of selling goods in a foreign market at a lower price than in the domestic market in order to gain market share. The lower price in the American market could be seen as an attempt to undercut American producers and gain a competitive advantage.

Suppose That a Canadian Brewery Sells Beer in Both Canadian