What would be the full economic price of this legislation

Assignment Help Operation Management

Reference no: EM132303474

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 $10 million in withdrawals from other banks’ ATM machines. On average, noncustomers earn a wage of $22 per hour and pay ATM fees of $3.00 per transaction. It is estimated that banks would be willing to maintain services for 6 million transactions at $1.25 per transaction, while noncustomers would attempt to conduct 21 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 nonpecuniary cost of legislation that would place a $1.25 cap on the fees banks can charge for noncustomer transactions?

Instructions: Enter your responses rounded to the nearest penny (two decimal places).

$ __________________

What would be the full economic price of this legislation?

$ _______________________

Reference no: EM132303474

Questions Cloud

Explain arguments against the bill focusing on the pressure : Explain arguments against the bill focusing on the pressure/stress it adds to the relationship and the pre-existing mental illnesses

Product are especially important to potential customers : What features of your product are especially important to potential customers? In which countries do these customers live?

Components and failing to return parts to brian norman : Has Smart Binary Center been negligent in its actions regarding keeping track of replaced computer components and failing to return the parts to Brian Norman?

Recommendations on six starting points for value creation : Focus your recommendations on six starting points for value creation.

What would be the full economic price of this legislation : What would be the full economic price of this legislation?

Identify two stakeholders in the job analysis process : Identify two stakeholders in the job analysis process, and discuss what they contribute to the process and how the information they provide can affect analysis.

University relations-marketing to work on research project : You have been selected by the Office of University Relations and Marketing to work on a research project that is designed to increase enrollment

Major sections of the situation analysis and subsections : List and briefly describe the two major sections of the Situation Analysis and their subsections?

What seperates leaders from mangers : What seperates leaders from mangers? Do certain kinds of firms need to stress particular areas of operations management? Explain.

User Account

All Pages