______ occurs when one group of customers pays more and another group pays less than the cost of providing their service.

Question

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Cross-subsidization occurs when one group of customers pays more and another group pays less than the cost of providing their service. This can happen when a company offers discounts or subsidies to certain customer groups in order to encourage their business, while charging higher prices to other groups. This can lead to a situation where some customers are essentially “free-riding” on the services provided by others, which can create inefficiencies in the market and lead to higher costs for everyone involved.

______ Occurs When One Group of Customers Pays More and Another