Suppose that a firm is maximizing profit in its home market at output Q₁ and price P₁ in the following graph:

If the firm now has the opportunity to sell overseas at given world price P₂ and the firm Can practice "dumping," which one of the following will NOT happen?

Question

Suppose that a firm is maximizing profit in its home market at output Q₁ and price P₁ in the following graph:

Suppose that a firm is maximizing profit in its home market at output Q<sub>1</sub> and price P<sub>1</sub> in the following graph: If the firm now has the opportunity to sell overseas at given world price P<sub>2</sub> and the firm Can practice dumping, which one of the following will NOT happen? A) Total output of the firm will become greater than Q<sub>1</sub>. B) Home market price will rise above P<sub>1</sub>. C) The firm will increase its profits by engaging in dumping. D) The firm will maintain its home market price at P?<sub>1</sub> and will sell abroad at price P<sub>2</sub>.

If the firm now has the opportunity to sell overseas at given world price P₂ and the firm Can practice "dumping," which one of the following will NOT happen?

Quizplus · Accepted Answer

The Answer of Suppose that a firm is maximizing profit in its home market at output Q₁ and price P₁ in the following graph: If the firm now has the opportunity to sell overseas at given world price P₂ and the firm Can practice "dumping," which one of the following will NOT happen?

Suppose That a Firm Is Maximizing Profit in Its Home