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

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:

Management and Strategy, #quesWhat features of Johnson & Johnson''s "Our Cr...

#quesWhat features of Johnson & Johnson''s "Our Credo" made it so effective in guiding J&J''s response to the Tylenol tampering crisis? Where was J&J''s "Our Credo" in the run-up t

Strategic management in a global environment, 1. Read "The Global Branding ...

1. Read "The Global Branding of Stella Artois" in page 244 to 258, and answer the following questions: a) Develop a 5-forces analysis of the beer industry, noting whether the force

Advantages of time study, 1. Output standards are easily convertible into...

1. Output standards are easily convertible into labor costs per unit of output. 2. Output standards facilities scheduling and controlling the flow of production thr

Organisations strategic capabilities, Strategies of the organisation suppor...

Strategies of the organisation support in the business expansion and increase the revenue . Following are the strategic capabilities: Production: Open kitchen system is used by

Strategic management, 1. “A mission describes what the organization is now;...

1. “A mission describes what the organization is now; a vision statement describes what the organization would like to become.” Differentiate between corporate mission and strategi

Introduction to bread talk, Strategic management is a systematic analysis o...

Strategic management is a systematic analysis of the internal and external factors to develop strategic actions for organizational goals (Dobson & Richards, 2004). Bread Talk is a

Organisation and develop a strategic plan, Develop Strategic Plan This...

Develop Strategic Plan This assessment requires that you analyse the capabilities of an organisation and develop a strategic plan. To enable you to do this you must complete t

Effect of support on negative affect, There is wide support from government...

There is wide support from government agencies for people to exercise and indeed take part in sport. For many sportspeople, however, injury plays a part in their day-to-day sportin

Explain business strategy, Explain Business strategy Business strategy...

Explain Business strategy Business strategy is concerned with how an operating unit or strategic business unit approaches a certain market. This is the level where competitiv

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages