i) What is fully distributed cost pricing? Derive fully
distributed cost prices algebraically in linear market...
70.2K
Verified Solution
Link Copied!
Question
Economics
i) What is fully distributed cost pricing? Derive fullydistributed cost prices algebraically in linear market demand andcosts system?
ii) Is there any better pricing scheme than fully distributedcost pricing? Explain.
Answer & Explanation
Solved by verified expert
4.3 Ratings (694 Votes)
i Fully distributed costs are that costs which make everyservice pay for part of the historic cost It is also known asfully allocated cost As the name suggests cost is completelyallocated to every factor to which have service provided Thisinvolves common cost that is these costs cannot be specificallyattributed to one service or customer class but rather apply toallTo figure it out algebraically let us assume an market of 2product
See Answer
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!