| Home » Economics Homework Help » Business Economics Help » Dumping |
Dumping
A specific example of price discrimination is dumping under which there are two markets available to the monopolist. In one market the monopolist has no competitor while in the second he will have to face competitions. For instance the monopolist may be the sole seller in the whole market while in the foreign market he will be faced with a situation of stiff competition. In a situation like this the monopolist will normally fix a lower price of his goods in the foreign market to earn maximum net monopoly revenue.
It should be remembered here that dumping is not essentially confirmed to foreign and home markets alone. It is possible that the monopolist may get some market where he would be in a position to charge a higher price for his product. On the other hand in world markets he will have to sell his goods at a lower price. This situation, too, is a case of dumping. In fact, dumping means selling out any good at lower price in the market.
Conditions Favorable to dumping
There are two favorable conditions for the success of dumping: (1) the monopolist should have access to protect markets and (2) elasticity of demand for the product in the protected market should be less to enable him to realize higher price in it.
Purpose of dumping
(1) Larger production: Dumping is resorted to dispose of the surplus product. At times the calculations of the monopolist do not turn out to be true resulting in over-production forcing the seller to sell the excess product in foreign market at reduced prices.
(2) To overcome competition: yet another purpose of dumping is to drive away likely competitors from the unprotected market. This could be achieved by selling at a lower price in unprotected market.
(3) Expansion of product: dumping is also adopted to take advantage of increasing returns. Monopolist may expand production and enjoy the benefit of decreasing cost and the surplus production will be sold in foreign market at reduced price.
(4) Availability of favorable conditions: dumping is also resorted when there are appropriate conditions for price discrimination. For example, when the elasticity of demand for the commodity is more in foreign market as compared to home market, dumping is practiced.
Services:- Dumping Homework | Dumping Homework Help | Dumping Homework Help Services | Live Dumping Homework Help | Dumping Homework Tutors | Online Dumping Homework Help | Dumping Tutors | Online Dumping Tutors | Dumping Homework Services | Dumping
It should be remembered here that dumping is not essentially confirmed to foreign and home markets alone. It is possible that the monopolist may get some market where he would be in a position to charge a higher price for his product. On the other hand in world markets he will have to sell his goods at a lower price. This situation, too, is a case of dumping. In fact, dumping means selling out any good at lower price in the market.
Conditions Favorable to dumping
There are two favorable conditions for the success of dumping: (1) the monopolist should have access to protect markets and (2) elasticity of demand for the product in the protected market should be less to enable him to realize higher price in it.
Purpose of dumping
(1) Larger production: Dumping is resorted to dispose of the surplus product. At times the calculations of the monopolist do not turn out to be true resulting in over-production forcing the seller to sell the excess product in foreign market at reduced prices.
(2) To overcome competition: yet another purpose of dumping is to drive away likely competitors from the unprotected market. This could be achieved by selling at a lower price in unprotected market.
(3) Expansion of product: dumping is also adopted to take advantage of increasing returns. Monopolist may expand production and enjoy the benefit of decreasing cost and the surplus production will be sold in foreign market at reduced price.
(4) Availability of favorable conditions: dumping is also resorted when there are appropriate conditions for price discrimination. For example, when the elasticity of demand for the commodity is more in foreign market as compared to home market, dumping is practiced.
Services:- Dumping Homework | Dumping Homework Help | Dumping Homework Help Services | Live Dumping Homework Help | Dumping Homework Tutors | Online Dumping Homework Help | Dumping Tutors | Online Dumping Tutors | Dumping Homework Services | Dumping
Submit Your Query ???
Assignment Help
Microeconomics Help
Macroeconomics Help
International Economics
Business Economics Help
Topics
Demand Capital Characteristics
Cross Demand
Price Elasticity Factors
Income Demand
Demand Income Elasticity
Demand
Demand Price Elasticity
Total Outlay Method
Inductive Deductive Method
Demand Supply Interaction
Firm Equilibrium
Increasing Utility Methods
Monopoly Monopolistic Competition
Demand For Capital
Gross Net Interest
Firm Perfect Competition
Cost Theory Concepts
Interest
Isoquent Product Curve
Land Importance
Marginal Rate Substitution
Producers Equilibrium
Loanable Funds Supply
Demographic Transition
Capital
Labour Characteristics
Labour Division
Labour Types
Labour And Capital
Economic Laws Characteristics
Deductive Method
Inductive Method
Economic Laws
Macroeconomic Analysis
Microeconomic Analysis
Economics Scope
Large Scale Benefits
Douglas Production Function
Production Volume Factors
Production Laws
Large Scale Laws
Production Function
Production Significance
Oligopoly Emergence Causes
Oligopoly Classification
Market Size
Market And Oligopoly
Market
Monopoly Control
Dumping
Monopoly
Monopolistic Competition
Revenue Cost Nature
Price Discrimination
Competitive Market
Long Period Price
Short Period Price
Perfect Competition
Capitalism Problems
Price Mechanism
Price Mechanism Limitations
Demand Principle
Socialist Economy Problems
Profit Dynamic Theory
Profit
Profit Uncertainty
Profit Risk Theory
Profit Theory
Rent Kinds
Rent
Rent Modern Theory
Quasi Rent
Rent Ricardian Theory
Situational Rent
Demand Price Elasticity
Factor Pricing
Demand Affecting Factors
Returns To Scale
Isoquent Curves
Production Factor Supply
Land Productivity Factors
Land Importance
Labour
Production Scale
Land Characteristics
Internal Economies Types
Average Fixed Cost
Average Variable Cost
Gross Profit Constituents
Theory Of Costs
Long Run Marginal Cost
Homework Help, Online Tutor, Online Tutoring Available For All Subjects. Some useful topics are given below :