Which of the following is a consequence of the vague terminology used in most antidumping actions?
A) A firm believes that in several years, it will be making substantial profits and have a cost advantage over its less-aggressive competitors.
B) Firms further down the experience curve will have a cost advantage vis-à-vis those further up the curve.
C) Pricing decisions around the world will need to be centrally monitored.
D) A firm's ability to engage in price discrimination may also be challenged.
E) Antidumping regulations cannot be used to limit the prices a firm can charge in a given country.

Question

Quizplus · Accepted Answer

The vague terminology in antidumping actions can lead to challenges to a firm's ability to engage in price discrimination, as it may be difficult to differentiate between "normal" and "dumped" prices.

Which of the Following Is a Consequence of the Vague