A technique in which a company uses the revenues from the sale of those products that were once considered as waste to be more competitive in pricing their main product is:
A) by-product pricing
B) optional-product pricing
C) bundling pricing
D) captive-product pricing

Question

Quizplus · Accepted Answer

By-product pricing is the technique of using revenues from the sale of by-products or waste products to offset the costs of producing the main product. This allows companies to price their main product more competitively, making them more attractive to consumers. Optional-product pricing, bundling pricing, and captive-product pricing are different pricing strategies that are not related to the use of by-products or waste products.

A Technique in Which a Company Uses the Revenues from the Sale