The figure to the right shows an industry composed of a single monopolistic domestic firm. The firm sells in two, segmented markets: 1) a domestic market, where it faces the demand curve DDOM 2) an export market, where it faces the demand curve DFOR According to this figure, dumping is evident since OA. the domestic price of $7.50 exceeds the foreign price of $5.00. OB. the domestic price of $6.67 exceeds the foreign price of $5.00. OC. the volume of exports exceeds domestic sales. OD. the foreign price of $5.00 exceeds the domestic price of $4.29. 10.00 9.00- 8.00- 7.50 7.00-6.67 6.00- 5.00 4.00- 3.00- 2.00- 1.00- Cost, C and Price, P 5.00 4.29 3.33 0.00- 0.00 2 6 DOM MC -DFOR = MRFOR DDOM 2.00 4.00 6.00 8.00 Quantities produced and demanded, Q 10.00 Q Q

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