This document discusses international price discrimination, also known as dumping. It explains that dumping occurs when a firm charges a lower price abroad than at home for the same good due to higher price elasticity of demand in foreign markets. This allows the firm to earn higher profits than selling at a single price globally. The demand curve is downward sloping in the domestic market where the firm has monopoly power, and perfectly elastic in foreign markets where it faces competition. The firm determines the optimal output level where marginal cost equals aggregate marginal revenue from both markets. It then divides output between markets, charging different prices to extract the maximum profits possible through price discrimination.