subject
Business, 27.06.2020 05:01 sheldavis

Two-part tariffs involve two pricing components: a fixed fee to gain access to a product or service, and a price per unit of the product or service. Examples include (1) pricing at amusement parks where there is an entrance fee and a per ride fee (you can even think of situations where the per ride fee is $0 as a special case of a two-part tariff); (2) monthly charges for access to a wireless network, plus a price per minute or some other measure of data usage; (3) membership stores, where customers are charged a monthly or annual fee, but possibly lower prices on the goods sold. Health insurance can also be viewed as being like a two-part tariff. Consumers pay a fixed premium, then consume medical services, but at a reduced rate. In the first scenario (below) you are setting a price per office visit. There is no health insurance. The fixed costs, quantity, and number of patients are per year. Set a price that maximizes profits.
Fixed cost: $12,000
Marginal cost per office visit: $15

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 01:30
If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine
Answers: 1
question
Business, 22.06.2019 11:00
Which statement best describes the variety of workplaces commonly found in the health science career cluster? a. workplaces in this cluster include healthcare facilities such as hospitals, physician offices, and clinics. b. workplaces in this cluster include healthcare facilities, laboratories, and other environments such as offices or homes. c . workplaces in this cluster include nonprofit hospitals, government-run clinics, and private physicians' offices. d. workplaces in this cluster include private and nonprofit hospitals and clinics, and dentists' offices.
Answers: 1
question
Business, 22.06.2019 17:10
Calculate riverside’s financial ratios for 2014. assume that riverside had $1,000,000 in lease payments and $1,400,000 in debt principal repayments in 2014. (hint: use the book discussion to identify the applicable ratios.)
Answers: 3
question
Business, 23.06.2019 00:30
Emerson has an associate degree based on the chart below how will his employment opportunities change from 2008 to 2018
Answers: 3
You know the right answer?
Two-part tariffs involve two pricing components: a fixed fee to gain access to a product or service,...
Questions
question
Mathematics, 03.09.2020 20:01
question
Mathematics, 03.09.2020 20:01