Q523
An approach in which company under-costs it's one product and over-costs at least one product is classified as
A.
service-cost across subsidizing
B.
product-price cross subsidizing
C.
product-cost cross subsidizing
AnswerD.
product cross subsidizing
Answer: Option C
Solution
Answer: Option C
Solution:
An approach in which company under-costs it's one product and over-costs at least one product is classified as product-cost cross subsidizing. Product-cost cross-subsidization is the strategy of pricing a product above its market value to subsidize the loss of pricing a different product below its market value.