What kind of price discrimination is related to dumping of goods?
Dumping is, in general, a situation of international price discrimination where the price of a product which is sold to the importing country is less than the price of the same product when sold in the market of the exporting country. It is generally perceived that dumping would result in unfair trade.
Under which of the following conditions could a firm successfully price discriminate?
Three factors that must be met for price discrimination to occur: the firm must have market power, the firm must be able to recognize differences in demand, and the firm must have the ability to prevent arbitration, or resale of the product.
What is reverse price discrimination?
4th-degree price discrimination – when prices to consumers are same, but the producer faces different costs. Also known as reverse price discrimination. For example, ‘premium unleaded petrol’ may cost the firm an extra 1p over standard unleaded, but the firm may sell this premium unleaded at 5p.
What is dumping and types of dumping?
In economics, dumping refers to manufacturing firms exporting goods at a lower price than their domestic price or their cost of production. It is a type of predatory pricing. There are three main different types of dumping: persistent, predatory, and sporadic.
Under what conditions price discrimination is possible?
Answer: Price discrimination is possible only when the buyers from different sub-markets are willing to purchase the same product at different prices. If the elasticity of demand is the same, then the effect of the price change on the buyer will be identical too.
Which of the following is not an example of price discrimination?
The correct answer is D. Charging the same price to everyone for a good or service is not price discrimination.
What are the types of price discrimination?
There are three types of price discrimination: first-degree or perfect price discrimination, second-degree, and third-degree.
What are types of dumping?
Below are the four types of dumping in international trade:
- Sporadic dumping. Companies dump excess unsold inventories to avoid price wars in the home market and preserve their competitive position.
- Predatory dumping.
- Persistent dumping.
- Reverse dumping.
Which of the following conditions is not required for price discrimination?
Which of the following conditions is not required for price discrimination? Buyers with different elasticities must be physically separate from each other. the selling of a given product at different prices to different customers that do not reflect cost differences. You just studied 20 terms!