The result of cross-subsidization is that:

Question

Quizplus · Accepted Answer

Cross-subsidization involves charging higher prices for some products in order to subsidize lower prices for others. As a result, some products may look less profitable than they really are because their costs are being offset by profits from other products (option A). Conversely, some products may look more profitable than they really are because their costs are being artificially inflated by the need to subsidize other products (option B). Therefore, both options A and B are true, making option C the correct answer.

The Result of Cross-Subsidization Is That