Consumers must pay the manufacturer's out-of-pocket costs for a _____ premium.

Question

Quizplus · Accepted Answer

A self-liquidating premium is a type of premium where the manufacturer's out-of-pocket costs are built into the price of the product. Therefore, consumers must pay the manufacturer's costs as part of the overall price, making it a self-liquidating premium. The other options do not apply to this scenario, as cost-covered implies that the costs are covered by someone other than the consumer, subsidized implies that the costs are partially covered by someone else, and cost-plus implies that the price includes a markup.

Consumers Must Pay the Manufacturer's Out-Of-Pocket Costs for a _____