Persistent Dumping
(Figure 11.1)

In this example, the Japanese producer is a monopolist who uses price discrimination to maximize profits in the two markets. The firm charges a higher price in the Japanese market where the demand curve is less elastic. In the more elastic (more competitive) U.S. market, the firm charges a lower price for its exported product. Press the U.S. profits button to display the profits the firm earns in the U.S. market. Press the Japanese profits button to display the profits the firm earns in the Japanese market. Total profits are the sum of the two shaded rectangles. Press the Total profits button to display total profits. Remember: Price discrimination is viable only if there are no ways for consumers in the high-price market to buy the product from the low-price market, and if policymakers in the importing country do not impose antidumping duties.
Press "Continue" when you are ready to move on. The "Reset" button will clear the graph.