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

Show the arguments against the controllability principle, Q. Show the Argum...

Q. Show the Arguments against the controllability principle? - Political arguments may occur over such costs which are more subjective than objective when determining controll

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,

Define market value added, Q. Define Market value added? MVA is an exte...

Q. Define Market value added? MVA is an external measure of shareholder wealth, the market value added from one period to another. It is measured by the taking the rise in the

Planning for sustainability, A university has a small dorm with four rooms,...

A university has a small dorm with four rooms, in which three sophomores, A, E, and J, and a freshman, C, are residing. Not being equipped with gas/electricity meters for individua

BOSTON CONSULTING GROUP AND GE MATRIX, WHAT ARE THE CHARACTERISTICS OF EACH...

WHAT ARE THE CHARACTERISTICS OF EACH COMPONENT OF THE GE MATRIX?

Question 3, Conduct an industry & a 5-Forces analysis for BOE/AIR. w/focus ...

Conduct an industry & a 5-Forces analysis for BOE/AIR. w/focus on commercial aircraft mfg (Hint: extend POV to travel preferences now & future, & review BOE/Air''s POVs on the indu

Define strategic planning, QUESTION Firms often compete with each other...

QUESTION Firms often compete with each other to gain their customers' attention and business. While doing so, each firm tries to chalk out its unique strategy or gameplan. Stra

Blue ocean strategy, What is blue ocean strategy

What is blue ocean strategy

Feedback control - appraisal, Feedback is a process where part of the outpu...

Feedback is a process where part of the output of a system is measured and returned as input to regulate the systems further output. Feedback normally involves gathering informat

Organisation strategic - human resources, Experienced staff of the organisa...

Experienced staff of the organisation contributes in the business expansion of the company. Additionally, the company also provides intensive immersion program for its frontline cr

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages