Pricing ATM Machines
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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
$2.00 1,000
$1.75 1,500
$1.50 2,000
$1.25 2,500
$1.00 3,000
What ATM fee should the bank charge?
Book:
Managerial Economics: A Problem Solving Approach
Authors: Luke M. Froeb and Brian T. McCann
ISBN-13: 978-0-324-35981-7
ISBN-10: 0-324-35981-0
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Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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