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11:52 PM Sun Oct 5 . . . 2 0 79% Q ECON 340 E Cengage Dig | G with free trac Courses G economies o Untitled My Courses MindTap X Chat Thread + ng.cengage.com 16 . . . CENGAGE |MINDTAP Q Search this course ? Chapter 05 Homework X Back to Assignment A-7 Attempts Keep the Highest / 2 7. Forms of Dumping Giocattolo is a profit-maximizing firm that produces toy cars. In Italy, its home country, it enjoys unchallenged market power due to trade barriers that restrict competition. However, Giocattolo also exports toy cars to Spain, where the market is highly competitive. EI Given this scenario, which of the following statements is correct? Giocattolo sells toy cars at a lower price in Spain to dispose of its excess inventories. The demand that Giocattolo faces for toy cars in Spain is less elastic than in Italy. The demand that Giocattolo faces for toy cars in Italy is less elastic than in Spain. Suppose Giocattolo realizes that it should use every opportunity to maximize its profit and decides to resort to by consistently selling toy cars at lower prices abroad than at home. This may encourage the Spanish government to protect the interests of 2 by imposing antidumping duties no longer trading with Italy increasing transportation costs in Spain Grade It Now Save Continue Continue without saving