Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Assume that a local bank sells two services-- checking accounts and ATM card services. Mr. Done that is willing to pay $8 a month for the bank to service his checking account, and $10 a month for unlimited use of his ATM card. Ms. Beenthere wants to pay only $5 for a checking account, but will pay $15 for unlimited use of her ATM card. To keep this example simple, assume that the bank can provide each of these services at zero marginal cost.
A) If the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account?
B) If the bank is unable to use tying, what is the profit-maximizing price to charge for unlimited use of an ATM card?
C) If the bank is able to use trying to price checking account and ATM services, what is the profit-maximizing price to charge for the "tried good?
D) How much additional profit does the bank make when it switches to use of a trying strategy to price checking accounts and ATM services?
E) How much total surplus is generated from using trying to price the checking account and ATM services? How does that compare to the nontied pricing strategy? Which strategy has the largest deadweight loss?
which of the 3 determinants of macro performance (internal market forces, external shocks, and policy levers) would you consider the most important in terms of gauging the success/failure.
Which of the following is viewed as a fundamental building block of the U.S. economic way of thinking?
Draw an Edgeworth box with indifference curves through this endowment. At what combinations of X and Y are both better off (i.e., are Pareto Improving)? At what combinations of X and Y are there no more gains from trade (i.e., are Pareto Efficient)?
How do entities determine their fiscal period? Give an example. How would you define a highly leveraged company? What ratio would you use to determine this? Tell me one thing you learned from the guest lecture, and how do you think it may be useful f..
Delta Dawn’s Bakery is considering purchasing a new van to deliver bread. The van will cost $21,500. Two-thirds ($14,333) of this cost will be borrowed. The loan is to be repaid with four equal annual payments (first payment at t = 1) based on an int..
Illustrate what would the benefits of each action be (besides emissions reduction). Illustrate what would the costs of each action be.
Suppose the own price elasticity of market demand for retail gasoline is -0.8, the Rothschild index is 0.5, and a typical gasoline retailer enjoys sales of $1,500,000 annually. What is the price elasticity of demand for a representative gasoline reta..
Where does NSW get most of its natural gas supplies from up to now? What is happening to total domestic gas production in Australia and Describe the structural change that is taking place in the Australian gas market.
q1. bertrand price competition the two firms have the same demand curve p100-4q marginal cost of firm 1 is 5 and for
According to the information/decision-making theory:
Which one of the following would increase per-unit production cost and therefore shift the aggregate supply curve to the left?
A dissenting opinion in this case argued that Jerry Schuster did carry on his father's business and should be liable for obligations of the continued business. Does that strike you as reasonable? Shouldn't a warranty be valid so long as the business ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd