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

Behaviour of divisional senior executives, Q. Behaviour of divisional senio...

Q. Behaviour of divisional senior executives? EVA can affect the behaviour of divisional senior executives in the following ways. 1.  They would concentrate their investment

Calculate the growth-price-recovery, Hamadi Corporation manufactures an ele...

Hamadi Corporation manufactures an electronic component 'AZ-101'. This component is significantly different from its peer companies and has gained a high repute. The company presen

Advantages and disadvantages of process, Advantages and disadvantages 1...

Advantages and disadvantages 1. Advantages There are some benefits that Aldi can get from short term objectives such as allow development or small format supermarkets in edg

What is organizational design, 1.Middle managers are often at the center of...

1.Middle managers are often at the center of efforts to develop tactical plans to implement established strategies. How are tactical plans typically established? What challenges co

How is strategy to be implemented, QUESTION (a) What is strategy implem...

QUESTION (a) What is strategy implementation, and what problems may arise in implementing a strategic change? (b) Who implements strategy in the organisation and how can the

Components of the cost of production, Components of the cost of production ...

Components of the cost of production Any sustained rise in input prices usually lead to an increase in productprices through the cascading effect. The major components of the c

Blue ocean starategy, Ask quest''Blue Ocean Strategy’ a. What is it? b. Wh...

Ask quest''Blue Ocean Strategy’ a. What is it? b. What are its characteristics? c. If you were to develop a Blue Ocean Strategy for a firm of your choice (any industry, any size,

Advantages and disadvantages of the formal/rational approach, RF and JT are...

RF and JT are both former international rugby players who, when they retired, formed their own business, WFH Trading Company.  The company that they established at first manufactur

What does process of crafting and executing strategy entail, What Does Proc...

What Does Process of Crafting & Executing Strategy Entail? 1.   Crafting & executing a company's strategy is a five-stage managerial process: (a). Developing a strategic vi

Explain developing a strategic vision, Developing a Strategic Vision: Phase...

Developing a Strategic Vision: Phase 1 of the Strategy Executing, Strategy Making Process 1.   Very early in the strategy making process, a company's higher-ranking managers mu

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