Calculate atm fees, A bank in a mediumsized Midwestern

Calculate atm fees

Reference no: EM1370645

A bank in a mediumsized Midwestern city, Company X, currently charges$1 per transaction at it's ATM's. To determine whether to increase price, the bank managers experimented with a number of higher prices (in25-cent increments) at selected ATMs. The marginal cost of an ATM transaction is $0.50
ATM fee Usage
$2.00 1000
$1.75 1500
$1.50 2000
$1.25 2500
$1.00 3000

What ATM fee should the bank charge?

6.5 If elasticity is -2, price is $10, and marginal cost is $8, should you raise or lower price?

Reference no: EM1370645

Questions Cloud

Calculate a country money supply : Assume the entire economy contains $5000 worth of one-dollar bills. If people fail to deposit any of the dollars, but instead hold all $5000 as currency, how large is the money supply?

Java program use breadth-first search closest broadcast : Write the java program which will use breadth-first search (which you implement as part of your program) to determine the closest broadcast vertex for each vertex in graph.

Description of monopolistic competition : A restaurant industry has a market structure that comes closest to

Differences between monopolistic competition-pure monopoly : If the economy is at point C, what is the cost of one more automobile? One more rocket? Explain how the production possibilities curve reflects the law of increasing opportunities costs

Calculate atm fees : A bank in a mediumsized Midwestern city, Company X, currently charges$1 per transaction at it's ATM's. To determine whether to increase price,

Conflicts of interest faced by an investment advisor : Discuss and explain two conflicts of interest faced by an Investment Advisor who is employed by a commercial bank or an investment bank?

Explain in the satirical petition on behalf of french : Explain in the satirical petition on behalf of french candlemakers, frederic bastiat, a french economist, called attention to cheap competition from afar

Calculate maximum amount of new loan : Make an analysis by answering questions below. Suppose that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place:

Find maximum value of l if tcp sequence number not exhausted : Determine the maximum value of L such that TCP sequence numbers are not exhausted? Recall that TCP sequence number field has 4 bytes.

User Account

All Pages