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

Behaviour of divisional senior executives, Q. Behaviour of divisional senio...

Q. Behaviour of divisional senior executives? EVA can affect the behaviour of divisional senior executives in the following ways. 1. They would concentrate their investment

Benefit in a global market, 1. Execute an e-strategy in an organisation. ...

1. Execute an e-strategy in an organisation. 2. Develop processes to monitor the execution of an e-strategy in an organisation. 3. Assess how an e-strategy contributes to

Calculate the pricing strategy, Stephen Hecht, grandson of Marcus Hecht, th...

Stephen Hecht, grandson of Marcus Hecht, the founder of Classy Formal Wear and now executive vice president and chief operating officer of the firm, was considering how his new lin

Leadership and management case study, Prepare Congruence model

Prepare Congruence model

Hard HRM, what is that

what is that

Designing stakeholders evaluation policies, 1. What stakeholders would you ...

1. What stakeholders would you have in the designing of the teacher evaluation policies? 2. What would be inclusive in a teacher evaluation process? (be very specific) 3. When

Management decision - making case problem, Louise Nance had working on the ...

Louise Nance had working on the assembly line of the Jackson Manufacturing Company for about six months. During recent weeks, her supervisor, Ben Miller, noticed that her productio

Management, .” Differentiate between corporate mission and strategic vision...

.” Differentiate between corporate mission and strategic vision by taking corporate illustrations

Performance management scenario, You are Pam, Vice President of Marketing f...

You are Pam, Vice President of Marketing for Superior Products, Inc. You joined the company two months ago, replacing an individual who hadbeen the VP of Marketing for the comp

Leadership, Critically evaluate and analyse leadership you have witnessed i...

Critically evaluate and analyse leadership you have witnessed in specific situations. This means comparing concrete examples (what was said and what was done) to relevant theories

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages