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. DenotingT 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 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.

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. DenotingT 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 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.