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 quick ratio or acid test, Q. Show the Quick ratio or acid test? ...

Q. Show the Quick ratio or acid test? Quick ratio or acid test Quick ratio = Current assets less inventories / Current liabilities (times) This ratio meas

What techniques would you use, Question 1: "Sometimes conflicts escalat...

Question 1: "Sometimes conflicts escalate, the atmosphere becomes charged with anger, frustration, resentment, mistrust, hostility, and a sense of futility....in such a confli

Three ways of sustaining competitive , Three ways of sustaining competitive...

Three ways of sustaining competitive benefit are? Ans) differentiation, Price-based strategies and lock-in

Monitor the performance of a team , 1. Monitor the performance of a team ag...

1. Monitor the performance of a team against given objectives 2. Recommend how to better performance against given objectives.

astro line, (A) What is the optimal solution, i.e., how many units of e...

(A) What is the optimal solution, i.e., how many units of every watch should be formed to maximize daily profits and how much daily profit will the company create? (B) How m

Free cash flows, Free cash flows can be arrived at by using the following c...

Free cash flows can be arrived at by using the following calculation Operating profit before interest and tax (PBIT) + Depreciati

Pbpk models strategies, Model-Building Strategies Various strategies ha...

Model-Building Strategies Various strategies have been used when implementing whole body PBPK models. As discussed below, it is important to distinguish between model building

Develop wind energy offshore, We know from a great deal of research that wh...

We know from a great deal of research that when asked to assign probabilities to uncertain states of nature most people give answers that are over-confident when calibrated against

Long-term strategic management, After reading through the articles provided...

After reading through the articles provided in your Assigned Reading and Research, Review one of the articles using the following format with the headings indicated in bold below:

Statistical procedure for management, A highly perishable drug spoils after...

A highly perishable drug spoils after three days. That is, a fresh unit on day t may be used on day t, day t+1, and day t+2, but must be disposed of at the end of day t+2. Each

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages