What is dumping and why do nations dump? Is dumping on U.S. markets legal? How can we detect dumping?
Dumping is exporting a good at a price below its cost of production. The goal of dumping is to drive
competitors out of business to gain monopoly power in order to eventually raise price and profit. Dumping
on U.S. markets is illegal. One way of detecting a dumping practice is to compare the export prices of the
foreign producer to the prices it charges in its own domestic market.
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A profit-maximizing firm will hire workers up to the point at which
A) MRP < MFC. B) MRP = MFC. C) MRP > MFC. D) MRP = MPP.
Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the table below.Number ofMugs Per DayTotal CostPer Day0$101$142$193$254$325$406$49If the market for mugs is perfectly competitive, and mugs sell for $7.50 each, then Chris should make ________ mugs per day.
A. 5 B. 4 C. 0 D. 6