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A Firm Charges a Lower Price in Another Country Than

Question 32

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A firm charges a lower price in another country than it does for the same product in its home country may be a simple case of price discrimination. (For example, "international editions" of textbooks are much lower than the American edition.) To prove dumping, it must be shown that

A firm charges a lower price in another country than it does for the same product in its home country may be a simple case of price discrimination. (For example, "international editions" of textbooks are much lower than the American edition.) To prove dumping, it must be shown that


A) the consumers in the home country have a lower price elasticity of demand than consumers in the foreign country.
B) the government in the home country did not subsidize production of the good.
C) the item can be produced in the foreign country.
D) the cost of production is higher than the price the firm charges for the good.
E) All of these could be used to prove dumping.

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