Pricing ATM Machines (Simple Pricing)
A bank in a medium-sized Midwestern city, Firm X, currently charges $1 per transaction at its ATMs. To determine whether to raise price, the bank managers experimented with a number of higher prices (in 25 -cent increments) at selected ATMs. The marginal cost of an ATM transaction is $0.50.
ATM Fee Usage
What ATM fee should the bank charge?
Managerial Economics: A Problem Solving Approach
Authors: Luke M. Froeb and Brian T. McCann