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

EFE Matrix, Prepare an EFE Matrix for our university Islamic international ...

Prepare an EFE Matrix for our university Islamic international Islamabad by identifying and evaluating external opportunities and threats facing higher education in your state ,the

Importance of strategising in the success of a company, Which is more impor...

Which is more important in explaining the success or failure of companies: strategising or luck?

A prolific author, Dr. Allen Roth, a prolific author, is considering initia...

Dr. Allen Roth, a prolific author, is considering initiallising her own publishing company. He will call it STC Publishing, Inc. STC estimated costs are: Fixed Cost = $25,0

Portfolio analysis, In portfolio analysis, the business views its product l...

In portfolio analysis, the business views its product lines and business units as separate investments, each responsible for producing a positive return. These separate investments

Research on a business organization, The title of the research question is:...

The title of the research question is: 1. To investigate and research on a business organization of your interests. 2. To identify the scope of their business strategy, within th

The key stages in maintenance program in an organization, Question: (a)...

Question: (a) Many organizations consider the maintenance function as a critical operational and decision making area that can guarantee plant availability and reliability. A

Incorporate strategic career planning, What outcomes are being assessed ...

What outcomes are being assessed 1. Demonstrate to a prescribed acceptable industry level service skills within a tourism/hospitality operation (b) 2. Recognise and examine

Cohesion case 2011 for walt disney, develop efe matrix for walt disney

develop efe matrix for walt disney

Formulate a corporate level strategy, For your first assignment you describ...

For your first assignment you described the recent macro and micro scale developments of the sector you are or would like to be in. Now select a prominent company (it can be eithe

Organisations strategic capabilities, Strategies of the organisation suppor...

Strategies of the organisation support in the business expansion and increase the revenue . Following are the strategic capabilities: Production: Open kitchen system is used by

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages