Two countries just established a free-trade agreement. The CEO of a ultra high-quality competition bicycle manufacturer notices that there is only one other firm in the country that manufacturers competition-ready bicycles. His firm prices its bicycles below the cost of production of the other firm, driving the other firm out of business. The CEO then raises the price of his bicycles now that there is no competition. Classify the situation described. (1 point)
O This situation is an example of a tariff.
This situation represents dumping.
This situation is an example of an infant industries argument.
O This situation represents a bilateral trade agreement.