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10. The reasons behind dumping in international trade include:

a. market prices are set by demand and supply, not by the cost of production.

b. dumping can be part of a long-term strategy.

c. both a and b

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Discusssing the Arguments in Support of Restricting Imports
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Raushan Raj
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3 Nov 2020

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Related questions

24. How can dumping increase profits for a monopolist?

A) It allows a monopoly to advertise its brand at a lower cost to a larger market.

B) It increases revenues more than costs if export sales are more price-responsive than domestic sales.

C) It creates international trade through reciprocal dumping.

D) It cannot be profitable, because the monopoly is lowering its price.

The correct answer is B.

Please explain it.

As it relates to international trade, dumping:

a. is defined as selling more goods than allowed by an import quota.

b. is the practice of selling goods in a foreign market at less than cost

c. is a form of price discrimination illegal under U.S. antitrust laws

d. constitutes a general case for permanent tariffs.

The market for paper in a particular region in the United States is characterized by the following demand and supply curves: QD = 160, 000 − 2, 000P and QS = −40, 000 + 2, 000P, where QD is the quantity demanded in 100-pound lots, QS is the quantity supplied in 100-pound lots, and P is the price per 100-pound lot. Currently there is no attempt to regulate the dumping of effluent into streams and rivers by the paper mills. As a result, dumping is widespread. The marginal external cost (MEC) associated with the production of paper is given by the curve MEC = 0.0006QS.

1 (a) Calculate the output and price of paper if it is produced under competitive conditions and no attempt is made to monitor or regulate the dumping of effluent. (b) Determine the socially efficient price and output of paper. (c) Explain briefly why the answers you calculated in parts (a) and (b) differ

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