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

Feed-forward control - prevention rather than cure, Q. Feed-forward control...

Q. Feed-forward control - prevention rather than cure? Feed-forward control would be a system that in a pre-emptive way, reacts to changes in its environment, normally to maint

Prepare a brief on decision making, Question 1 "Use anger correctly and...

Question 1 "Use anger correctly and improvements will happen!" To what extent this statement is true? Question 2 Company "Great Success" wishes to train its staffs o

Blue ocean starategy, Ask quest''Blue Ocean Strategy’ a. What is it? b. Wh...

Ask quest''Blue Ocean Strategy’ a. What is it? b. What are its characteristics? c. If you were to develop a Blue Ocean Strategy for a firm of your choice (any industry, any size,

Diversification, refer to case scenario,is ICP''s focuse low-cost/price str...

refer to case scenario,is ICP''s focuse low-cost/price strategy opproprate for its industy?why?

Calculate average waiting time, Nation -Wide Bus Lines (NWBS) conducts trai...

Nation -Wide Bus Lines (NWBS) conducts training classes for new drivers. The classroom can hold 35 students. As long as the class size is less than or equal to 35, the training pro

Stakeholders in an organization, a) develop a schedule for executing a stra...

a) develop a schedule for executing a strategy plan in an organization. b) Make appropriate dissemination process to gain commitment from stakeholders in an organization. c) Desi

Market penetration in static markets, Particularly complex for weakly posit...

Particularly complex for weakly positioned companies

What does process of crafting and executing strategy entail, What Does Proc...

What Does Process of Crafting & Executing Strategy Entail? 1. Crafting & executing a company's strategy is a five-stage managerial process: (a). Developing a strategic vi

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.

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

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages