When foreign producers sell at prices below their marginal production cost, either by making losses or with the assistance of government subsidies, this is an example of:

Question

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Dumping occurs when foreign producers sell goods in another country at prices below their marginal production cost, often with the aim of gaining market share or driving out competition. This can be due to making losses intentionally or receiving government subsidies to support such pricing strategies.

When Foreign Producers Sell at Prices Below Their Marginal Production