1. service-cost across subsidizing
  2. product-price cross subsidizing
  3. product-cost cross subsidizing
  4. product cross subsidizing
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1 Answers

Answer: Option 3

An approach in which company under-costs it's one product and over-costs at least one product is classified as product-cost cross subsidizing. Product-cost cross-subsidization is the strategy of pricing a product above its market value to subsidize the loss of pricing a different product below its market value.

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