Persistent dumping can occur if a profit maximizing firm faces a _____ demand in the home market and sells its good in a _____ international market.
A)relatively elastic; less competitive
B)relatively inelastic; less competitive
C)relatively inelastic; highly competitive
D)relatively elastic; highly competitive

Question

Quizplus · Accepted Answer

Persistent dumping occurs when a firm faces a relatively inelastic demand in the home market, allowing it to charge higher prices domestically, and sells in a highly competitive international market where it must lower prices to compete.

Persistent Dumping Can Occur If a Profit Maximizing Firm Faces