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From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $14 million in withdrawals from other banks’ ATM machines. On average, noncustomers earn a wage of $26 per hour and pay ATM fees of $3.25 per transaction. It is estimated that banks would be willing to maintain services for 6 million transactions at $1.50 per transaction, while noncustomers would attempt to conduct 22 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 cash.
Based on this information, what would be the no pecuniary cost of legislation that would place a $1.50 cap on the fees banks can charge for noncustomer transactions?
Suppose the equation for the demand curve for some product (X) is P = 8 - .6Q and the supply curve is P = 2 + .4Q. Graph the curves and label the area of the graph which represents the tax collection as TC and the area representing the deadweight los..
Explain the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes. Do you agree or disagree with this view.
Illustrate what are the factors which involve the provide also demand of which good or service. How do you expect the demand also provide of which good or service to change in the next yr.
Upjohn Company purchased new packaging equipment with an estimated useful life of five years. The cost of the equipment was $35,000 and the salvage value was estimated to be $5,000 at the end of year 5. Straight-line method. Double-declining-balance ..
What is the impact of opening trade on the real rental on capital.
Yesterday, the current exchange rate was $ 1.05 Canadian per U. S. dollar and traders expected the exchange rate to remain unchanged for the next month. Today, with new information, traders now expect the exchange rate next month to fall to $ 1 Canad..
What price would firm set to maximize profit. Compute profit and Consumer Surplus.In diagram given above blue shaded region is consumer surplus and green shaded region is deadweight loss.
Explain when Bank of Maryland will exercise the option. What is Bank of Maryland's break-even 60-day spot price on the option contracts? On the futures contracts.
Canadian GDP whether measured by the value added approach, the expenditure approach, or the income approach.
Please make a table in the above form but showing FC (fixed cost), VC (variable cost), AC (average cost), MC (marginal cost), MR (marginal revenue) and find the profit maximizing level of output.
U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools.
A huge increase in resource costs causes the price to rise to $9 also Block's only manages to sell 460 bottles of perfume.
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