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Pricing Schedule
A pricing schedule is a function that maps the quantity of a good purchased to the total price paid. Types of pricing schedules * Linear Pricing Schedule - A pricing schedule in which there is a fixed price per unit, such that where total price paid is represented by ''T(q)'', quantity is represented by ''q'' and price per unit is represented by a constant ''p'', T(q) = pq * Nonlinear Pricing Schedule - Nonlinear pricing is a pricing schedule in which quantity and total price are not mapped to each other in a strictly linear fashion ** Affine Pricing - An affine pricing schedule consists of both a fixed cost and a cost per unit. Using the same notation as above, T(q) = k + pq, where k is a constant cost In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which .... References Financial ec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Function (mathematics)
In mathematics, a function from a set to a set assigns to each element of exactly one element of .; the words map, mapping, transformation, correspondence, and operator are often used synonymously. The set is called the domain of the function and the set is called the codomain of the function.Codomain ''Encyclopedia of Mathematics'Codomain. ''Encyclopedia of Mathematics''/ref> The earliest known approach to the notion of function can be traced back to works of Persian mathematicians Al-Biruni and Sharaf al-Din al-Tusi. Functions were originally the idealization of how a varying quantity depends on another quantity. For example, the position of a planet is a ''function'' of time. Historically, the concept was elaborated with the infinitesimal calculus at the end of the 17th century, and, until the 19th century, the functions that were considered were differentiable (that is, they had a high degree of regularity). The concept of a function was formalized at the end of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Good (economics)
In economics, goods are items that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not transferable. A good is an "economic good" if it is useful to people but scarce in relation to its demand so that human effort is required to obtain it.Samuelson, P. Anthony., Samuelson, W. (1980). Economics. 11th ed. / New York: McGraw-Hill. In contrast, free goods, such as air, are naturally in abundant supply and need no conscious effort to obtain them. Private goods are things owned by people, such as televisions, living room furniture, wallets, cellular telephones, almost anything owned or used on a daily basis that is not food-related. A consumer good or "final good" is any item that is ultimately consumed, rather than used in the production of another good. For example, a microwave oven or a bicycle that is sold to a consum ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price
A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the commercial exchange, the payment for this product will likely be called its "price". However, if the product is "service", there will be other possible names for this product's name. For example, the graph on the bottom will show some situations A good's price is influenced by production costs, supply of the desired item, and demand for the product. A price may be determined by a monopolist or may be imposed on the firm by market conditions. Price can be quoted to currency, quantities of goods or vouchers. * In modern economies, prices are generally expressed in units of some form of currency. (More specifically, for raw materials they are expressed as currency per unit weight, e.g. euros per kilogram or Rands per KG.) * Although ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Linear Pricing Schedule
A pricing schedule is a function that maps the quantity of a good purchased to the total price paid. Types of pricing schedules * Linear Pricing Schedule - A pricing schedule in which there is a fixed price per unit, such that where total price paid is represented by ''T(q)'', quantity is represented by ''q'' and price per unit is represented by a constant ''p'', T(q) = pq * Nonlinear Pricing Schedule - Nonlinear pricing is a pricing schedule in which quantity and total price are not mapped to each other in a strictly linear fashion ** Affine Pricing - An affine pricing In economics, affine pricing is a situation where buying more than zero of a good gains a fixed benefit or cost, and each purchase after that gains a per-unit benefit or cost. Calculation Denoting ''T'' is the total price paid, ''q'' is the quant ... schedule consists of both a fixed cost and a cost per unit. Using the same notation as above, T(q) = k + pq, where k is a constant cost. References Financ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fixed Price
A fixed price is a price set for a good or a service that is not subject to bargaining. The price may be fixed because the seller has set it, or because the price is regulated by the authorities under price controls. Bargaining is very common in many parts of the world, but not in most retail stores in Europe, North America, and Japan. Elsewhere, fixed prices tend to be an exception from the norm. Fixed-price tender Fixed-price contract A fixed-price contract is a contract where the contract payment does not depend on the amount of resources or time expended by the contractor, as opposed to cost-plus contracts. Fixed-price contracts are often used for military and government contractors to put the risk on the side of the vendor and control costs. Historically, when fixed-price contracts are used for new projects with untested or developmental technologies, the programs may fail if unforeseen costs exceed the ability of the contractor to absorb the overruns. In spite ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Nonlinear Pricing
Nonlinear pricing is a broad term that covers any kind of price structure in which there is a nonlinear relationship between price and the quantity of goods. An example is affine pricing. A nonlinear price schedule is a menu of different-sized bundles at different prices, from which the consumer makes his selection. In such schedules, the larger bundle generally sells for a higher total price but a lower per-unit price than a smaller bundle. References and links Definition on About.com Walter Nicholson, Christopher Snyder - Microeconomic Theory: Basic Principles and Extensions, Eleventh Edition See also * Two part tariff *[...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Affine Pricing
In economics, affine pricing is a situation where buying more than zero of a good gains a fixed benefit or cost, and each purchase after that gains a per-unit benefit or cost. Calculation Denoting ''T'' is the total price paid, ''q'' is the quantity in units purchased, ''p'' is a constant price per unit, and ''k'' is the fixed cost, the affine price is then calculated by T=p*q + k.Jean Tirole, 1988, The Theory of Industrial Organisation, p. 136 In mathematical language, the price is an affine function (sometimes also linear function In mathematics, the term linear function refers to two distinct but related notions: * In calculus and related areas, a linear function is a function whose graph is a straight line, that is, a polynomial function of degree zero or one. For di ...) of the quantity bought. An example would be a cell phone contract where a base price is paid each month with a per-minute price for calls. Sliding-scale price contracts achieve a similar effect, alt ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost
In Production (economics), production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production. More generalized in the field of economics, cost is a performance metric, metric that is totaling up as a result of a process or as a differential for the result of a Decision making, decision. Hence cost is the metric used in the standard Business process modelling, modeling paradigm a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
