Decide what fee to charge for expedited payments

Assignment Help Business Economics

Reference no: EM13898412

The purpose of this assessment is to review a scenario and use economic principle(s) to explain why people act differently from what they say.

Assessment Description:

Recently, a bank was trying to decide what fee to charge for "expedited payments"—payments that the bank would transmit at a faster speed to enable customers to avoid late fees on cable TV bills, electric bills, and the like. To try to determine what fee customers were willing to pay for expedited payments, the bank conducted a survey. It was able to determine that many of the people surveyed already paid fees for expedited payment services that exceeded the maximum fees that they said they were willing to pay.

Reference no: EM13898412

Questions Cloud

Find camerons utility-maximizing point : Cameron buys cheese (C) and chocolate pudding(P). His utility function is U=5C^1/4*P3/4.The price of cheese is $1, and the price of chocolate pudding is $2. Cameron's weekly snack budget is $60. Find Cameron's utility-maximizing point. Find Cameron's..

Budget constraint and budget constraint under alternative : Alternative B is for reforming the disability system is to maintain the old benefit levels (for those who receive them) but allow workers to earn up to $300 a month and still keep their benefits. Those who earn over $300 per month would lose all DI b..

What are the components of each approach : Compare and contrast the two approaches of GDP computation mentioned in the textbook. Explain which approach you think is more reliable and gives more accurate estimates of GDP. Provide two examples—one of the U.S. and a second of another nation—to s..

Assume that the government imposes a price floor on wheat : Given the market for wheat in equilibrium, assume that the government imposes a price floor on wheat. Explain what happens to the market for wheat as a result of this action? Draw and graph to fully illustrate the situation.

Decide what fee to charge for expedited payments : The purpose of this assessment is to review a scenario and use economic principle(s) to explain why people act differently from what they say. Recently, a bank was trying to decide what fee to charge for "expedited payments"—payments that the bank wo..

Compute the NPV of this alternative : An alternative requires $60000 to be paid over the course of year 1, $75000 over year 2, and $40000 over year 3. All values are in constant dollars. Using the tables in the chapter, compute the NPV of this alternative.

The appropriate incentive to increase profits beyond : The owners of a small manufacturing concern have hired a manager to run the company with the expectation that (s)he will buy the company after five years. The goal of the owners in making this hire is to find the appropriate manager that will increas..

Capturing intellectual property : Explain the assertion that businesses can lose rights if they do not diligently assess and pursue intellectual property protection.

Trade secret-criminal enforcement : Trade Secret: Criminal Enforcement. Why has criminal misappropriation of trade secrets become an issue of greater concern in recent years?

User Account

All Pages