With respect to general approaches for applying freeconomics to various industries,reduction of sale price of one item in order to sell something else of value is known as ________ approach.
A) labor exchange
B) gift economy
C) freemium
D) zero marginal cost
E) cross subsidies

Question

Quizplus · Accepted Answer

The approach described in the question, i.e. reducing the sale price of one item to sell something else of value, is known as the cross subsidies approach. This approach involves subsidizing the cost of one product or service by charging a higher price for another product or service offered by the same company. For example, a company may offer a free basic version of its software to attract users, but charge for premium features. This approach is commonly used in industries such as telecommunications, where companies may offer discounted phone plans in exchange for customers signing up for a long-term contract. Choice E, cross subsidies, best describes this approach.

With Respect to General Approaches for Applying Freeconomics to Various