Solved: A if abc is able to engage in international dumping, Business Management

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A if abc is able to engage in international dumping

International DumpingConsider a firm - ABC Inc. - that sells calculators to Canada and France.

The demand forcalculators in each country is: Canada: P = 12 - 1/3Q France: P = 6 - 1/6Q

Assume that ABC's total cost function is: TC = 2Q

(a) If ABC is able to engage in international dumping, calculate the equilibrium prices andquantities in each market as well as their profits.

(b) In the absence of international dumping, calculate the equilibrium price and quantity as well as their profits

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Business Management: A if abc is able to engage in international dumping

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