Explain two-part tariff system, Strategic Management

Assignment Help:

Q. Explain Two-part tariff system?

With a two-part tariff system the buyer is charged:

  • A transfer price equal to the seller's variable (marginal) cost for each unit sold and transferred by the seller.
  • A fixed charge per period by seller irrespective of the amount of units sold and transferred. The fixed charge should cover the sellers fixed overhead, give an element of profit and the necessary motivation for the seller to supply.

This method is similar in nature to how you are charged for most of your domestic bills.


Related Discussions:- Explain two-part tariff system

e-strategy in organisations, 1 - Describe the Benefits of Having an E-Stra...

1 - Describe the Benefits of Having an E-Strategy in Organisations. 2 - Estimate the Contribution of an E-Strategy to the Achievement of an Organisation's Objectives. 3 - Tal

Two useful approaches to assess feasibility, Two useful approaches to asses...

Two useful approaches to assess feasibility in financial terms are: Ans) Funds flow and break-even examines

Show the features of international and global strategies, Question: (a)...

Question: (a) Firms are always looking to outperform each other; three generic strategies have been identified to allow them not only to attain advantages over competitors b

Performance management scenario, You are Pam, Vice President of Marketing f...

You are Pam, Vice President of Marketing for Superior Products, Inc. You joined the company two months ago, replacing an individual who hadbeen the VP of Marketing for the comp

Importance of external factors affecting the organization, Choose a real li...

Choose a real life company.  This could be an organization from any industry.  No two students should select the similar company.  It could be the organization you are working in o

Strategy, Strategy formulation presupposes a set of goals and objectives. W...

Strategy formulation presupposes a set of goals and objectives. Why aren’t goals and objectives obvious? What characteristics of people and organizations can make setting goals and

Explain key principles of total productive maintenance, Question: (a) E...

Question: (a) Explain clearly how businesses may adopt key principles of Total Productive Maintenance in order to create a safe and productive environment. (b) Describe in d

Activities in strategic management process, a) identify and explain the key...

a) identify and explain the key activities in the strategic management process. b) why do businesses need to go international .?

Principles of hyper competitive strategies., how might the principles of hy...

how might the principles of hyper competitive strategy b apllied to a fashion retailing industry

What are the four types of strategic control, QUESTION 1 The most impor...

QUESTION 1 The most important purpose of strategic control is to help Top Management achieve organizational goals through monitoring and evaluating the strategic management pro

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd