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

GE matrix, Characteristics of each component of GE matrix

Characteristics of each component of GE matrix

Decision making process, In management strategic decision making involves g...

In management strategic decision making involves great complexity, uncertainty and risk. Describe the strategic decision making process and consider the effects of bounded rationa

Explain economic value added, Q. Explain Economic value added? Economic...

Q. Explain Economic value added? Economic value added was developed by Stern Stewart & Co and is a registered trademark. EVA is an estimate of economic profit, measured as Net

Write memo or email to develop telecommunication, Your assignment is to wri...

Your assignment is to write a memo or email based on the case below.Dropthe completed and final assignment in the assignment dropbox on Slate and bring a hard copy to next week's c

Infrastructure changed to accommodate the industry, This introduction of te...

This introduction of technology (for example, the Internet/mobile technology/software) has eliminated some industries and has significantly impacted/threatened several others. Howe

Effect of support on negative affect, There is wide support from government...

There is wide support from government agencies for people to exercise and indeed take part in sport. For many sportspeople, however, injury plays a part in their day-to-day sportin

Topic on training, need to make a memo to company executives explaining why...

need to make a memo to company executives explaining why adequate training is important to the company and how the financial costs can be justified

Corporate Strategy, Corporate Strategy

Corporate Strategy

Advantages of divisional structures, Advantages of divisional structures ...

Advantages of divisional structures - Quicker decision making e.g. autonomous divisions do not have the long-winded process of a long chain of command when making competitive d

Discuss the rationale for tfx company, TFX is a multinational company which...

TFX is a multinational company which manufactures and retails branded designer clothing with business units in a number of different countries globally. Up unless now, each of the

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages