Question

Which of the following is true?

A) In the case of a small country, export subsidy raises national welfare of the exporting country.

B)The rent on voluntary exports restraint likely goes to the importing country.

C) The major cause for persistent dumping is demand differences across countries.

D) None of the above is true.

Answer 1

Answer: (C) The major cause for persistent dumping is demand differences across countries.

When a monopolist continuously sells a portion of his commodity at a high price in the domestic market and the remaining output at a low price in the foreign market, it is called persistent dumping.