According to the cost-based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than ?
Correct answer: A. average total cost
- A. average total cost
- B. average variable cost
- C. average fixed cost
- D. marginal cost
Explanation
Under the cost-based definition, dumping occurs when the export price is below the product's average total cost. Average total cost includes both variable and fixed costs, making it the relevant full-cost benchmark.
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