The term "Dumping" means ?
Correct answer: B. Sale in a foreign market of a commodity at a price below marginal cost
- A. The sale of the sub-standard commodity
- B. Sale in a foreign market of a commodity at a price below marginal cost
- C. Sale in a foreign market of a commodity just at marginal cost without too much of profit
- D. Smuggling of goods without paying any customs duty
Explanation
Dumping involves selling a product in a foreign market at an abnormally low price, commonly described in elementary economics as below cost. Smuggling concerns evasion of customs duties, while selling at marginal cost is not necessarily dumping.
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