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
D. product cross subsidizing
Answer: Option C
Solution (By Examveda Team)
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.
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