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

What is strategy?, What Is Strategy? 1. A company's strategy is manage...

What Is Strategy? 1. A company's strategy is management's game plan for how to grow up the business, how to attract & please customers, how to compete effectively, how to cond

Groups and teams, groups and or teams will solve effectiveness and efficien...

groups and or teams will solve effectiveness and efficiency in 21st organisations.discuss

Evaluate total shareholder return, Q. Evaluate Total shareholder return? ...

Q. Evaluate Total shareholder return? Total shareholder return (TSR) TSR = {(Dividend per share + Growth in share price) / (Market share price at the start of the period)

Diffusion is, The amount and pace of market adoption.

The amount and pace of market adoption.

Write memo or email to develop telecommunication, Your assignment is to wri...

Your assignment is to write a memo or email based on the case below.Dropthe completed and final assignment in the assignment dropbox on Slate and bring a hard copy to next week's c

GE matrix, Characteristics of each component of GE matrix

Characteristics of each component of GE matrix

A strategic vision is differ from a mission statement, A Strategic Vision i...

A Strategic Vision is Differ from a Mission Statement: Whereas the chief concern of a strategic vision is with "where we are going & why", a company's mission statement usua

Strategy development processes-vision and mission, Strategy development pro...

Strategy development processes Vision and mission statements There was no announcement about Aldi's mission statement, but it's vision relates to offer its customers in

Preliminary investigation - knowledge management technique, Tatra is the wo...

Tatra is the world's third oldest car company, and produced a number of rather advanced streamlined cars during the course of its production run. Because spare parts and manuals ar

Value marginal tradeoffs, Problem: Both person A and person B are purchasin...

Problem: Both person A and person B are purchasing bananas and apples from the same supermarket, where the price of a banana is $2 and the price of an apple is $1. Person A is curr

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages