i) What is fully distributed cost pricing? Derive fully distributed cost prices algebraically in linear market...

70.2K

Verified Solution

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!
Become a Member

Other questions asked by students