Dumping goods is profitable whenever:

Question

Quizplus · Accepted Answer

Dumping goods is profitable when the foreign market price, including transportation costs, is higher than the marginal cost but lower than the home price. This allows the firm to sell their products in a foreign market at a lower price than their domestic market, creating a competitive advantage. However, if they set prices below their marginal cost, they will eventually go bankrupt. Hiring illegal workers or not getting caught will not guarantee profitability in dumping.

Dumping Goods Is Profitable Whenever