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

verify the manufacturer''s claim, A supplier of components to an electroni...

A supplier of components to an electronic industry makes a sophisticated product which sometimes fails immediately it is used. He controls his manufacturing process so that the pro

Diffrence between ROCE and RI, Q. Diffrence between ROCE and RI? Both R...

Q. Diffrence between ROCE and RI? Both ROCE and RI are good measures to use when assessing financial performance, since both consider the capital invested, as well as the profi

Investment planning, Using examples, explain the differences between the pr...

Using examples, explain the differences between the primary and secondary markets for securities. Question Discuss systemic risk and any effects that it might have on investo

Explain the different types of personalisation systems, Question: (a). ...

Question: (a). With the help of appropriate examples of your choice explain the different types of personalisation systems? (b). Distinguish between the micropayments and

Planning for sustainability, A university has a small dorm with four rooms,...

A university has a small dorm with four rooms, in which three sophomores, A, E, and J, and a freshman, C, are residing. Not being equipped with gas/electricity meters for individua

Characteristics of organic verses mechanistic organisations, Characteristic...

Characteristics of 'organic' verses 'mechanistic' organisations Organic Mechanistic Management Style Partici

Systematic analysis, At this time, take a step back and clear your head. Sp...

At this time, take a step back and clear your head. Spend a few moments in deeper thought about yourself, in a self-evaluative manner. Then, describe how you will incorporate what

Ray''s satellite emporium, Ray's Satellite Emporium wishes to verify the be...

Ray's Satellite Emporium wishes to verify the best order size of their best selling satellite dish (model TS111). Ray has estimated the yearly demand for this model at 1,000 units

Discuss the main categories of the matrix, Question: (a) ‘Many organi...

Question: (a) ‘Many organisations are using the internet a tool for survival. Digital firms require new organisational designs and management processes'. Explain how the Por

Calculate the price earnings ratio, Q. Calculate the Price earnings ratio? ...

Q. Calculate the Price earnings ratio? Price earnings (PE) ratio PE = (Market share price/EPS) (no. of times) The PE ratio is most widely quoted inv

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages