BXE Steel, an American steel manufacturer, has sent representatives to Washington to complain about the low priced Chinese steel that is beginning to dominate the American market. The Chinese government partners with their producers and pays for the fixed costs—thus, it is technically not product dumping.  Yet, as with all American producers, they are forced to lower their prices given the commodity nature of the product.  The Marketing Director at BXE says "this is simply unfair."  It is possible that the FTC will simply say that this is nature of the commodity market in which they compete. So—which of these markets are they competing in?

Answer rating: 100% (QA)

BXE Steel is competing in an oligopolistic market In an oligopolistic market there are a few dominan... View the full answer