In the absence of international dumping, BTI charges a uniform price to U.K. and Canadian customers...
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In the absence of international dumping, BTI charges a uniform price to U.K. and Canadian customers (ignoring transportation costs). The firm's profit-maximizing output is toys, the price is $ and total profit is $ market and the Canadian market, respectively, BTI's profits on its U.K. sales Based on the graphs for the United Kingdom BTI's profits on its Canadian sales. Suppose now that BTI engages in international dumping. Then in the U.K., BTI charges the price of $ on U.K. sales goes to $ . In Canada, BTI charges the price of $ by $ $ With dumping, total profits per toy, and the profits that it accrues per toy, and the profits that it accrues on Canadian sales equal compared to the case of a nondiscriminating seller. PRICE (Dollars per toy) 3 2 7 12 11 10 9 1 0 0 200 400 United Kingdom MR 600 MC ATC Price DUK QUANTITY (Toys) 800 1000 1200 PRICE (Dollars per toy) 12 11 10 9 8 7 5 DC 3 2 0 0 200 400 MR Canada 600 QUANTITY (Toys) 800 1000 1200 MC A ATC + Price 16 15 14 13 12 652 2 2 0 8 PRICE (Dollars per toy) 2 1 0 0 200 400 Total Market 600 800 1000 MC MC ATC + ATC Price Total Profit DUK+C MR 1200 1400 1600 QUANTITY (Hundreds of toys) In the absence of international dumping, BTI charges a uniform price to U.K. and Canadian customers (ignoring transportation costs). The firm's profit-maximizing output is toys, the price is $ and total profit is $ market and the Canadian market, respectively, BTI's profits on its U.K. sales Based on the graphs for the United Kingdom BTI's profits on its Canadian sales. Suppose now that BTI engages in international dumping. Then in the U.K., BTI charges the price of $ on U.K. sales goes to $ . In Canada, BTI charges the price of $ by $ $ With dumping, total profits per toy, and the profits that it accrues per toy, and the profits that it accrues on Canadian sales equal compared to the case of a nondiscriminating seller. PRICE (Dollars per toy) 3 2 7 12 11 10 9 1 0 0 200 400 United Kingdom MR 600 MC ATC Price DUK QUANTITY (Toys) 800 1000 1200 PRICE (Dollars per toy) 12 11 10 9 8 7 5 DC 3 2 0 0 200 400 MR Canada 600 QUANTITY (Toys) 800 1000 1200 MC A ATC + Price 16 15 14 13 12 652 2 2 0 8 PRICE (Dollars per toy) 2 1 0 0 200 400 Total Market 600 800 1000 MC MC ATC + ATC Price Total Profit DUK+C MR 1200 1400 1600 QUANTITY (Hundreds of toys)
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