Pricing schedule

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, quantity is represented by q and price per unit is represented by a constant p, T = 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 = k + pq, where k is a constant cost.