A firm with excess capacity assigns all fixed costs to domestic production. For the international markets, the firm uses a pricing scheme that focuses mainly on variable costs. This strategy allows the firm to offer its products abroad at a cost lower than at home. The firm in question could be accused of _____.

A firm with excess capacity assigns all fixed costs to domestic production. For the international markets, the firm uses a pricing scheme that focuses mainly on variable costs. This strategy allows the firm to offer its products abroad at a cost lower than at home. The firm in question could be accused of _____.



a.
guerilla marketing
b.
dumping
c.
price skimming
d.
limit pricing


Answer: B


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