According to the cost-based definition of dumping, dumping begins to occur when a firm sells a product at a price that is less than average variable cost.

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The cost-based definition of dumping states that dumping occurs when a firm sells a product at a price that is less than its normal value in the exporting country or less than its cost of production, whichever is higher. It is not based on the average variable cost.

According to the Cost-Based Definition of Dumping, Dumping Begins to Occur