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

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

What are the benefits of elearning, Question : (a). How would you cat...

Question : (a). How would you categorise eBusiness/ eCommerce? (b). Explain how the use of Cookies in eBusiness/ eCommerce may impede on the privacy of an individual

Organisational behaviour, explain strategy as an organisational process

explain strategy as an organisational process

Describe the elements of external environment analysis, Question 1: (a)...

Question 1: (a) What is diversification? Distinguish between the different types of diversification. (b) Give the advantages and disadvantages of these types of diversifica

Strategic management of bread talk, This report discusses is based on the s...

This report discusses is based on the strategic management of Bread Talk. Bread Talk is, a Singapore based fFood cCompany . It is identified that under strategic management, The co

Show the merits of using return on investment, Q. Show the Merits of using ...

Q. Show the Merits of using return on investment? Merits of using return on investment (ROI) - Relative (percentage) measure so performance can be compared 'relatively' f

30137341, #questatra is the world''s third oldest car company, and produced...

#questatra 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 manu

Environmental appraisal, introduction

introduction

Multiple choice help, If in a given year a company spends $2 million on new...

If in a given year a company spends $2 million on new product development, design, and engineering for its entry-level camera line; $4 million on new product development, design, a

Strategic position analysis, The assignment for the module is an individual...

The assignment for the module is an individual report which contributes 25% of the module total mark. You should conduct a Strategic Position Analysis (Situation Analysis) on an or

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages