Product-cost cross-subsidization means that if a company undercosts one of its products,it will overcost at least one of its other products.

Question

Quizplus · Accepted Answer

Product-cost cross-subsidization refers to the practice of a company overcharging for one product in order to compensate for undercharging for another product. Therefore, if a company undercosts one of its products, it will need to overcost at least one of its other products to balance the costs and maintain profitability.

Product-Cost Cross-Subsidization Means That If a Company Undercosts One of Its