Illustrate when banks would be willing to maintain services

Assignment Help Macroeconomics

Reference no: EM13222133

From California to New York, legislative bodies acrosso the United States are considering eliminating or reducing the surcharges that banks imppse on non customers who make $10million in qirhseQloa deo orhwe banks' ATM machines. On average, noncustomers earn a wage of $20 per hour and pay ATM fees of $2.75per transaction. It is estimated that banks would be willing to maintain services for 4 million transactions at $.075 per transaction, while noncustomers would attempt to conduct 16 million transactions at that price. Estimates suggest that for every 1 million gap between the desired and available transactions, a typical consumer will have to spend an extra minute traveling to another machine to withdraw the cash. Based on this information, use a graph to carefully illustrate the impact of legislation that would place a $0.75 cap on the fees banks can charge for noncustomer transactions.

Reference no: EM13222133

Questions Cloud

How can you balance these risks and rewards : What are the risks and rewards of changing from a current supplier to a new supplier ? How can you balance these risks and rewards?

Which one of these is generally the most important : List the strategic objectives of aggregate planning. Which one of these is most often addressed by the quantitative techniques of aggregate planning? Which one of these is generally the most important?

What about transfer payments made by the gov to the poor : If the gov spends $10 million giving subsidies to certain types of companies, is that money added to the category of G. What about if the gov gives a grant to a company. What about transfer payments made by the gov to the poor.

What is the impact of russias climate and natural landscapes : What is the impact of Russia's climate and natural landscapes on the country's pattern of economic development. Identify advantages and disadvantages of Russia's natural environment for its regional economic development prospects.

Illustrate when banks would be willing to maintain services : From California to New York, legislative bodies acrosso the United States are considering eliminating or reducing the surcharges that banks imppse on non customers who make $10million in qirhseQloa deo orhwe banks' ATM machines.

What is the average time spent by each order waiting : An automobile brake supplier receives an average of 1,000 orders per week. An average of 500 orders are waiting to be processed.

What is the resulting inventory policy : Identify the tradeoff that I-mart must consider when deciding whether to go with the airfreight option. What would you recommend? Why? Quantify the costs and benefits of the change.

How will events impact the equilibrium price and quantity : You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic type of soft products in your market, you also compete against major brands such as Coca-Cola ..

What is the theoretical flow time of the process : During rush hour, demand exceeds capacity and long lines form. Does it make sense to add a pizza assembler? Why or why not? Please limit your answer to 2-3 sentences.

User Account

All Pages