Keyword: fixed cost

A la carte or Set Menu? (5/9/2006)

Mixed bundling, by offering a package deal as well as separately priced items, can be a revenue-maximizing pricing strategy in the face of varying customer needs.

Keywords: a la carte, cable channels, cable subscription, fixed cost, mixed bundling, package deal, pricing, set menu, table d’hote, variable cost

Fund Raising at the Margin (9/22/2006)

The MR = MC profit maximization rule could be applied to fund raising.

Keywords: fixed cost, marginal cost, marginal revenue, MC, MR, profit

Get in Where You Fit in (4/3/2003)

Quoting room rates according to the guest's elasticity of demand improves the bottom line when there is surplus capacity.

Keywords: fixed cost, hotel, price discrimination, profit, room rates, Senior discount, surplus capacity, variable cost

Labor on Call (1/10/2007)

Flexible work scheduling to match customer traffic is one effective way to transform labor from a fixed cost into a variable cost in the retail business.

Keywords: customer traffic, fixed cost, flexible schedule, labor productivity, variable cost, Wal-Mart

Metered Consumption (3/7/2007)

Resource conservation depends on who pays and the time horizon of costs vs benefits.

Keywords: energy conservation metering, energy efficiency, external cost, fixed cost, insulation, internal cost, landlord, life cycle cost, long-term benefit, marginal cost, private cost, property right, short-term cost, social cost, tenants, water

Mickey Mouse Economics (10/26/2002)

By spreading out large fixed cost over more customers, price discrimination directly increases Disney World's profit.

Keywords: average cost, Disney World, economies of scale, fixed cost, mickey mouse, price discount, price discrimination, profit

Chicken feet, long considered a waste product in the US, have become a profit center for the high-volume low-profit US chicken industry in the China export market. But this export trade is not exempted from political whims.

Keywords: byproduct, chicken feet, China, comparative advantage, culture, export, fixed cost, inferior good, tariff, trade protection, US

Pricing to Cost - But Which Cost? (10/13/2007)

Pricing to marginal cost may not cover fixed cost.

Keywords: consumer surplus, economic surplus, fixed cost, marginal cost, perfect competition, perfect price discrimination, price searcher, price taker, profit, two-part pricing, variable cost

Profit Maximization - Total vs Marginal (11/17/2007)

Profit maximization can be characterized with reference to the total revenue and total cost curves or the marginal revenue and marginal cost curves

Keywords: fixed cost, marginal cost, marginal revenue, profit maximization, total cost, total revenue, variable cost

The Snowball Effect (11/9/2001)

Knowledge-based industries subject to increasing returns because of high R&D fixed costs and low variable costs naturally tend to monopolize the market.

Keywords: Adam Smith, avalanche, diminishing returns, fixed cost, increasing returns, lock in effect, marginal cost, natural monopoly, negative feedback, network externality, operating system, positive feedback, R&D, snowball effect, software