When a firm sells its good abroad below the cost of producing the good the firm is

A) using the concept of comparative advantage.
B) dumping.
C) taking advantage of the infant industry argument.
D) taking advantage of absolute advantage.

B

Economics

You might also like to view...

When protection is encouraged to protect a growing domestic industry; which of the following is being used?

A) Anti-dumping argument B) Save domestic jobs argument C) National security argument D) Infant-industry argument E) Diversity and stability argument

Economics

Which of the following could be true of perfect competition but not of monopoly?

a. The government licenses production of the good to a few firms. b. The government grants a patent for the good. c. A firm can earn economic profit in the long run. d. If price falls below average variable cost, it pays to shut down. e. There are no barriers to entry.

Economics