Dumping typically occurs as long as the foreign producer sells its output at a price
A) above its total costs.
B) below its average total costs but above its average variable costs.
C) below its average variable costs.
D) above its average fixed costs but below its total variable costs.

Question

Quizplus · Accepted Answer

Dumping occurs when a foreign producer sells goods in another country at a price below its average total costs but above its average variable costs, often to gain market share or eliminate competition.

Dumping Typically Occurs as Long as the Foreign Producer Sells