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

Problam solveing reasnubleness, how to I to di can I have some tips

how to I to di can I have some tips

Develop a performance measurement system, Q. Recommended process to develop...

Q. Recommended process to develop a performance measurement system 1. Senior management need to determine a clear vision of the change that will be required and demonstrate c

What are the six steps in strategic planning, Question: (a) Explain, w...

Question: (a) Explain, with an example of your choice, why providing more resources on a project does not always lead to completion of the work earlier than scheduled or getti

Industrial accident, An industrial accident may be defined as "an occurrenc...

An industrial accident may be defined as "an occurrence. Which interrupts or interferes with the orderly progress or work in an industrial establishment." According to the Facto

Stakeholders, Ask What advantages are there to employees as stakeholders ar...

Ask What advantages are there to employees as stakeholders are available in Germany that are not provided to employees in US companies? In the United States, how do employees let

How market has influenced the forms and content of the media, 1. The develo...

1. The development of the mass media has been shaped in fundamental ways by the fact that they have often been profit-driven. The commercial or capitalist context of media is evide

Impact of environmental factors, Political Factors Political stability o...

Political Factors Political stability of parties and their actions like granting etc might also influence the business expansion plans of Bread Talk up to lesser extent in Singa

Explain the factors that cause unsuccessful implementation, Question: S...

Question: Strategy implementation can be said to consist of securing resources, organizing these resources and directing the use of these resources within and outside the organ

Management strategic planning, You are an asset manager for a large public ...

You are an asset manager for a large public utility organisation. The organisation has a range of assets, ranging from major distributors to minor assets directly serving users (fo

Strategy, explain strategy as an organisational process

explain strategy as an organisational process

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages