Illustrate what is the own price elasticity for atm

Assignment Help Macroeconomics
Reference no: EM1329104

Demand Elasticity :sample question

The non-customer demand for an ATM transactions is Q = 19,000 - 6,000P. Right now the company handles 10,000 non-customer ATM transactions per day at a fee of $1.50.

a. What is the own price elasticity for ATM fees charged to non-customers? At the current ATM fee, should you raise or lower your ATM fees? Why?

b. What should your new ATM fee be if your marginal cost of servicing an ATM transaction is $0 (zero) and you are only considering maximizing profits derived from ATM fees?

 

Reference no: EM1329104

Questions Cloud

What is the largest positive number : What is the largest positive number one can repent in an 8-bit 2's complement code ? write your result in binary and decimal.
Question about global corporation : Question about Global Corporation - Create a hypothetical global corporation and answer the five basic questions that deal with production:
Discuss how to increase motivation and satisfaction : At work you are asked to complete a project with a one year timeline with your team. Discuss how to increase motivation, satisfaction, and performance within your group.
Future value for different compounding frequencies : Find the amount to which $500 invested today will grow to in five years under each of the following conditions:
Illustrate what is the own price elasticity for atm : Illustrate what is the own price elasticity for ATM fees charged to non-customers.
Warehouse management : Warehouse Management -Warehousing has a critical part to play in the supply chain and equal attention must be given to the security of its goods.
Explain ethical issues of websites : Explain Ethical issues of websites and describe the ethical issues of AT and T
Differences in cross-cultural leadership : Describe at least three differences in cross-cultural leadership.
Excription of capital punishment : How it relates to amendment #8 Bail, cruel and usual punishment? How it relates to religion or religious view?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Graph the isoquants in terms of labor inputs leisure

A firm has offices in London and New York. Fractional units of labor can be employed in each location (as part-timers can be hired) and the headquarters could be in either city.

  Assume the economy is slumping into recession

Assume the economy is slumping into recession and needs a fiscal policy boost.

  Examining causes of shift in demand and supply curves

Describe the major difference between the law of demand and the law of supply. Consider the supply and demand schedules below.

  Change in macro variables

Explain how an increase in interest rates initiated by the Federal Reserve affects:

  Illustrate what are the production elasticities of demand

Illustrate what are the production elasticities of demand for labor, capital (trucks) and energy. What type of returns to scale is consistent with the above production function.

  Determining the monopolist profit

Imagine that the firm must choose one of three quality levels: z = 1; z=2; and z = 3. Which quality choice will maximize the firm's profit?

  Illustrate the potential problems of economic transition

Illustrate the potential problems of economic transition from a planned economy to a competitive free-market economy.

  Describing the three theories

Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.

  Neo classical theory of economic growth

Describe the neoclassical theory of economic growth. Then explain how the neoclassical theory is impacted by research about endogenous technological changes and increasing marginal returns.

  Analysis of price elasticity and price increase

In an article about the financial problems of the USA today, Newsweek reported that the paper was losing about $20 million a year.

  Advantages as well as disadvantages of service payment

Compare the advantages as well as disadvantages of fee for service payments and a DRG-based payment system

  Exponential growth of population

Suppose that the town of Grayrock had a population of 10,000 in 1998 and a population of 12, 000 in 2003.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd