Cross-subsidization occurs when

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Cross-subsidization refers to the practice of using the profits from one product to subsidize low prices on another product. This is a common strategy in business, where a company may charge higher prices on one product to offset the cost of producing and selling another product at a lower price. This can help a company to maintain profitability and remain competitive in the marketplace. Government subsidies (B), forced profit-sharing (C), and mandatory industry subsidies (D) do not necessarily involve cross-subsidization.

Cross-Subsidization Occurs When