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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.
Where: T is the total price paid, q is the quantity in units purchased, p is a constant price per unit, k is the fixed cost,
the affine price is then calculated by T = p * q + k
In mathematical language, the price is an affine function (sometimes also linear function) of the quantity bought.
An example would be a cell phone contract where a base price is paid each month with a per-minute price for calls.
10-26-2009 08:16:03
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The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details