When a firm either charges less than its costs or less than it charges in its home market, the situation is called:
A) transferring.
B) off- pricing.
C) cost- less.
D) dumping.
E) discounting.

Question

Quizplus · Accepted Answer

Dumping is the practice of selling goods in a foreign market at prices lower than those charged in the home market or lower than the cost of production, with the aim of eliminating competition or gaining market share. This can be seen as unfair competition and is often restricted by trade laws.

When a Firm Either Charges Less Than Its Costs or Less