Fifth Third Bank in Bloomington, Indiana wants to determine the ATM fee that will maximize its...
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Fifth Third Bank in Bloomington, Indiana wants to determine the ATM fee that will maximize its profit from ATM operation. The bank management experimented with a number of fees (in 0.25 increments) at selected ATM machines. The marginal cost of an ATM transaction is $0.50. The table below provides information on ATM fees and the corresponding usage of ATM ATM Fee ATM Usage 2.25 2.00 1.75 1.50 1.25 1.00 0 1,000 1,500 2,000 2,500 3,000 Calculate the marginal revenue if the ATM fee is $1.00. Fifth Third Bank in Bloomington, Indiana wants to determine the ATM fee that will maximize its profit from ATM operation. The bank management experimented with a number of fees (in 0.25 increments) at selected ATM machines. The marginal cost of an ATM transaction is $0.50. The table below provides information on ATM fees and the corresponding usage of ATM ATM Fee ATM Usage 2.25 2.00 1.75 1.50 1.25 1.00 0 1,000 1,500 2,000 2,500 3,000 Calculate the marginal revenue if the ATM fee is $1.00.
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To calculate the marginal revenue when the ATM fee is 100 we need to determine the change in t... View the full answer
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