At an institution, the charging of ordinary services at a fixed price, generally irrespective of actual usage (a price calculation that charges a single fixed payment for a service, irrespective of usage). For the bank, this has the advantage of saving costs by not having to charge a fee each time. The customer, for his part, is protected against unexpected charges. Of course, the banks reserve the right to charge a special fee for any further use of services when a certain ceiling [corridor] is exceeded. – With regard to taxation, a single-stage income tax rate. In this case, the initial and top tax rates are the same, so the marginal rate of tax is constant. – In the telecommunications sector, access to the provider’s normal range of services (telephony; telephony, Internet access; Internet-access) at a fixed price. – At events, especially for young people (flat-rate parties; all-you-can-drink parties), the possibility, included in the admission price, of enjoying drinks freely within a certain limit. Such parties have been the subject of particular criticism since around 2005 because they promote binge drinking (imbibing heavily alcohol in a short space of time to get drunk, the effects lasting for at least a couple of days during which time the heavily intoxicated drinker drops out by not working, ignoring responsibilities, squandering money, causing car accidents and engaging in other harmful behaviors such as aggressive or unsafe sex) among young people. – See bank charges, brokerage, fee, fixed fee, fixed-price transaction, base price, margin.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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