Figure 5.2. International Dumping
-Consider Figure 5.2.ABC Inc.sells 27 calculators at a price of $5 each, realizing profits totaling $54.Of this quantity, ABC Inc.sells ____ calculators in Canada and realizes revenues totaling $____; the firm sells ____ calculators in France and realizes revenues totaling $____.

Question

Figure 5.2. International Dumping 
-Consider Figure 5.2.ABC Inc.sells 27 calculators at a price of $5 each, realizing profits totaling $54.Of this quantity, ABC Inc.sells ____ calculators in Canada and realizes revenues totaling $____; the firm sells ____ calculators in France and realizes revenues totaling $____.

Quizplus · Accepted Answer

From the chart in Figure 5.2, we can see that the price of calculators in Canada is $5, which is the same as the price in the domestic market. Therefore, ABC Inc. sells 21 calculators in Canada ((100-80)/5) and realizes revenues of $105 (21x$5).

The price of calculators in France is $9.75. To calculate the quantity sold in France, we use the formula from the chart: Q = 100 - (P' x D), where P' is the price in the foreign market and D is the demand in the foreign market. Plugging in the numbers, we get Q = 100 - (9.75 x 6) = 45. Therefore, ABC Inc. sells 6 calculators in France and realizes revenues of $30 (6x$5).

Thus, the answer is C, 21 calculators in Canada with revenues of $105 and 6 calculators in France with revenues of $30.