Question

sults in more than one other product being 7. Product-cost subsidization means that: A) when one product is overcosted, it results in more than overcosfed B) when a company undercosts more than one of its than one of its other products when a company undercosts one of its products, it will overcosta other products ) when one product is overcosted it result in all other products being o costs more than one of its products, it will overcost more e of its products, it will overcost at least one of its n

Answer 1

Correct Option C:

Definition: Product Cost subsidization means when company under cost or under price one of its product and loss due to that product is compromised by an established product by increasing cost over its market value.

Reason for not selecting other options:

Option A: Option A states that over costed of one product results in overcosting of one more other product. But in actual one product is under costed and other are over costed in product cost subsidization.

Option B: It states that when company undercost "more than one product", however concept can be used for atleast one product also.

Option D: As mentioned in option A, here also one product is overcosted and other products are also overcosted instead of undercosted.