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This diagram represents the effect of the antidumping duty on the marginal revenue schedule. There is a kink at the top of the aggregate demand curve as a result of the 'Fair Value' price (FV), which is what the antidumping duty is supposed to enforce. This will shift a foreign firm's marginal revenue schedule inward so that its new quantity produced will be at QAD. The price received by the foreign firm may change due to adjustments in cost schedule or demand.

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Updated June 25, 2015

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