A pricing schedule is a

function Function or functionality may refer to: Computing * Function key, a type of key on computer keyboards * Function model, a structured representation of processes in a system * Function object or functor or functionoid, a concept of object-oriente ...

that maps the quantity of a

good In most contexts, the concept of good denotes the conduct that should be preferred when posed with a choice between possible actions. Good is generally considered to be the opposite of evil and is of interest in the study of ethics, morality, ph ...

purchased to the total

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 c ...

paid.

Types of pricing schedules

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 pric ...

- A pricing schedule in which there is a

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 commo ...

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 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 bu ...

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 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 ...

.Affine Pricing
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References

Financial economics {{econ-stub