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

Groups and teams, groups and or teams will solve all the effectiveness and ...

groups and or teams will solve all the effectiveness and efficiency challenges facing the 21st century organisation

Open communication , 1. Encourage open communication among team members to ...

1. Encourage open communication among team members to support team development 2. Demonstrate ways of resolving conflict among team members

What are the benefits of cause and effect diagram, Question 1: a. List ...

Question 1: a. List out Dr. Edward Deming's contribution to Quality. b. Show the eight dimensions of Quality. Dr. Edward Deming's contribution to Quality. Eight dimen

Plan transition curves and superelevation, Current traffic pattern given as...

Current traffic pattern given as below. ZONE DESTINATION ZONE ORIGIN 1 2 3

Formal strategic planning for business, LD is the owner and manager of her ...

LD is the owner and manager of her own florist business, LD Flowers. Although starting out initially as a hobby, it has developed into a sustainable business. LD's original busines

Process to implement balanced scorecard, Q. Process to implement balanced s...

Q. Process to implement balanced scorecard? 1. A clear vision of introduction of a BSC communicated and demonstration which senior management are committed to the idea. 2. E

Integrated marketing communication, Integrated Marketing Communication (IMC...

Integrated Marketing Communication (IMC ) and Marketing Channel strategy : Develop a promotional strategy addressing the advertising and sales promotion aspect of communic

ReStrategic, Process design strategy define with example

Process design strategy define with example

Transport planning, Assume the population of Darwin in 50 yrs will be 2mill...

Assume the population of Darwin in 50 yrs will be 2million. There will be gas related industries in the surrounding areas of Darwin. Mining activities in the Northern Territory wil

Hi-fi Sector, how do i write the report?.

how do i write the report?.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages