_______________ cross-subsidisation means that if management under-costs one of its outputs,then it will over-cost at least one of its other outputs.

Question

Quizplus · Accepted Answer

Cross-subsidisation is a practice in which a firm deliberately overcharges for one product or service to offset the undercharging for another product or service. Here, the question is asking which cost we need to look at. It is about output prices or output costs. In this case, if management under-costs one of its outputs, it will over-cost at least one of its other outputs. So, the best choice is C, which is Output-cost.

_______________ Cross-Subsidisation Means That If Management Under-Costs One of Its