Which of the following is a true statement about the process of cross-subsidization, given that a firm is selling two products?
A. The two products cannot have interdependent demand functions.
B. The firm will sell both of its products at prices set above costs and the firm needs cost complementarities in the production of the two goods.
C. The firm needs cost complementarities in the production of the two goods.
D. The firm will sell both of its products at prices set above costs.
Answer: C
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