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

Strategic management process, Have you ever been involved in an effort to i...

Have you ever been involved in an effort to introduce a new product, service or technology in an organization? If so, share your experiences with the class. Provide the class wi

Strategic managerial communications, The objective of the term project is t...

The objective of the term project is to demonstrate your understanding and ability to apply the body of knowledge covered in this course. The goal will be on identifying communicat

Explain about hopwood’s self-control, Q. Explain about hopwood’s Self-contr...

Q. Explain about hopwood’s Self-control? Self-regulation e.g. members of staff or managers exerting self-control by the modification of their own behaviour. This is essence de

Components of the cost of production, Components of the cost of production ...

Components of the cost of production Any sustained rise in input prices usually lead to an increase in productprices through the cascading effect. The major components of the c

Difference between symmetric and asymmetric encryption, (a) Illustrate the ...

(a) Illustrate the difference between symmetric and asymmetric encryption, listing an advantages and a disadvantage of each. (b) What functions should be given by a public key

Supplementary activities, To be effective in hazard control programme it...

To be effective in hazard control programme it must be planned and should be logical. Programme objectives and safety policies need to be established. Responsibility to th

Strategy Formulation, # 14 Strategy formulation presupposes a set of goals ...

# 14 Strategy formulation presupposes a set of goals and objectives. Why aren''t goals and objectives obvious? What characteristics of people and organizations can make setting goa

Linking strategic organizational, Linking Strategic Organizational Initiati...

Linking Strategic Organizational Initiatives to Purpose, Mission, and Vision Select an existing business that is entering into a new or emerging market for that company. You may

Marketing plan, The market plan should be made based on a Hot Dog Vending C...

The market plan should be made based on a Hot Dog Vending Cart which is actually a hypothetical company I have created that operates in the US. Besides selling hot dogs, I would be

Evaluate the organisation''s strategic planning processes, Undertake the fo...

Undertake the following tasks : 1. Develop a position paper for enhancing the organisation's strategic capability by influencing the strategy in action. 2. Evaluate the organ

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages