If costs a firm $10 to produce a good and the same good sells for $7 abroad, then this firm is engaging in
A) profit maximization.
B) price discrimination.
C) price differentiation.
D) dumping.

Question

Quizplus · Accepted Answer

The firm is engaging in dumping, which is the practice of selling goods in a foreign market at a price lower than their cost of production. This can be considered as predatory pricing, as it may harm domestic producers and distort international trade.

If Costs a Firm $10 to Produce a Good and the Same