5. Forms of Dumping

Igrushka is a profit-maximizing firm that produces wooden dolls. In Russia, its home country, it enjoys unchallenged market power due to trade barriers that restrict competition. However, Igrushka also exports wooden dolls to France, where the market is highly competitive.

Given this scenario, which of the following statements is correct?

-Igrushka sells wooden dolls at a lower price in France to dispose of its excess inventories.

-The demand that Igrushka faces for wooden dolls in France is less elastic than in Russia.

-The demand that Igrushka faces for wooden dolls in Russia is less elastic than in France.

Suppose Igrushka realizes that it should use every opportunity to maximize its profit and decides to resort to----------------- by consistently selling wooden dolls at lower prices abroad than at home. This may encourage the French government to protect the interests of-------------------------- by .------------------

Options for first blank --------

1-predatory dumping

2-sporadic dumping

3-persistant dumping

Options for second blank --------

1-Russian Children

2-French toy makers

3-French children

Options for third blank --------

1-increasing transportation costs in france

2-no longer trading with russia

3-Imposing antidumping duties

Homework 4 (Ch 05) Back to Assignment Attempts Keep the Highest / 2 5. Forms of Dumping Igrushka is a profit-maximizing firm that produces wooden dolls. In Russia, its home country, it enjoys unchallenged market power due to trade barriers that restrict competition. However, Igrushka also exports wooden dolls to France, where the market is highly competitive. Given this scenario, which of the following statements is correct? Igrushka sells wooden dolls at a lower price in France to dispose of its excess inventories. The demand that Igrushka faces for wooden dolls in France is less elastic than in Russia. The demand that Igrushka faces for wooden dolls in Russia is less elastic than in France. Suppose Igrushka realizes that it should use every opportunity to maximize its profit and decides to resort to by consistently selling wooden dolls at lower prices abroad than at home. This may encourage the French government to protect the interests of by Grade It Now Save & Continue Continue without saving