Suppose that the marginal cost of an additional ton of steel produced - ProProfs Discuss
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Suppose that the marginal cost of an additional ton of steel produced by the Japanese is the same whether the steel is set aside for domestic use or exported abroad. If the price elasticity of demand for steel is greater abroad than it is in Japan, which of the following will be correct?



A. The Japanese will sell steel at a higher price abroad than they will charge domestic users.
B. The Japanese will sell more steel in Japan than they will sell abroad.
C. The Japanese will sell more steel abroad than they will sell in Japan.
D. The Japanese will sell steel at a lower price abroad than they will charge domestic users.
E. Insufficient information exists to determine whether the price or quantity will be higher or lower abroad.

This question is part of Micro: Chapter 11
Asked by Twright, Last updated: Jan 16, 2020

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1 Answer

John Smith

John Smith

Answered Apr 25, 2017

The Japanese will sell steel at a lower price abroad than they will charge domestic users.
 

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