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

Humantitiesstudying the humanities in a business or, Ask question #Minimum ...

Ask question #Minimum 100 words accepted What is the value of studying the humanities in a business or technical curriculum? How might a topic such as ancient art enhance contempor

Information strategic plan, Submit the integrated final copy of your Inform...

Submit the integrated final copy of your Information Strategic Plan. The proposal will actually consist of the purpose, history, and scope located in the final project template

Consolidation is concerned with, Protecting and strengthening the organizat...

Protecting and strengthening the organization's position in its present markets by its current products

Explain the importance of strategy development, Question 1: Custom Wine...

Question 1: Custom Wine Colorado Glasses of Leadville, Colorado, has just collected data from 75 defects from the day's production. a) As quality expert, you decide to con

The strategies of the functional areas of an organisation, Discuss the ways...

Discuss the ways in which the strategies of the functional areas of an organisation should support the other levels of strategy. In describing how the functional strategies sup

Hi-fi Sector, how do i write the report?.

how do i write the report?.

Assignment, Present a real life case study of the concept that you chose in...

Present a real life case study of the concept that you chose in Part One ‘in action’. You can use your own organisation or an organisation of your choice – we recommend you use an

Find the minimum total cost, A fence enclosure consists of a rectangle of l...

A fence enclosure consists of a rectangle of length L and width 2 R , and a semicircle of radius R , as shown in Figure 1. The enclosure is to be built to have an area of 1600 m

Quantitative analysis, how has quantitative analysis changed the current sc...

how has quantitative analysis changed the current scenario in the management world today?

The strategic management process, what is the greatest takeaway from this c...

what is the greatest takeaway from this case in terms of strategic management

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages