Expedited payments

Assignment Help Business Economics
Reference no: EM13859931

Recently, a bank was trying to decide what fee to charge for "expedited payments"—payments that the bank would transmit at a faster speed to enable customers to avoid late fees on cable TV bills, electric bills, and the like. To try to determine what fee customers were willing to pay for expedited payments, the bank conducted a survey. It was able to determine that many of the people surveyed already paid fees for expedited payment services that exceeded the maximum fees that they said they were willing to pay.

Analyze how does the bank's finding relates to economists' traditional focus on what people do, rather than what they say they will do.

Reference no: EM13859931

Questions Cloud

Public in their roles as workers-consumers and taxpayers : When medical care is reimbursed through employer provided insurance whose welfare is ultimately affected when cost of medical care rises: the owners of the firm that pays the premiums, the government whose revenues are reduced because insurance benef..
Calculate the present worth of the fuel cost : The cost of fuel for a smelting operation are expected to be $50000 in year three,$52500 in year four and amounts decreasing by 5% per year after through year ten. at interest rate of 8% per year, calculate the present worth of the fuel cost.
Costs for maintenance of buildings at industrial complex : Costs for maintenance of buildings at an industrial complex are expected to be $2000 in year three, $2500 in year four and amounts decreasing by $200 per year thereafter through year nine. at an interest rate of 10% per year, calculate the present wo..
Propositions and predictions about the world : In evaluating the accuracy of their statements, should one distinguish between (i) economist’s descriptive statements, propositions, and predictions about the world, and (ii) their statements about what policies should be adopted. Explain in detail
Expedited payments : Recently, a bank was trying to decide what fee to charge for "expedited payments"—payments that the bank would transmit at a faster speed to enable customers to avoid late fees on cable TV bills, electric bills, and the like.
Suffering from underemployment-excessive account deficit : U.S. is currently suffering from underemployment and excessive current account deficit. a) What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools. b)..
Typically the government-nominal rate of interest : If inflation falls from 5% to 3% to 1.3% it is sometimes called. Typically the government:  If the nominal rate of interest is 8 percent and the inflation rate is 3 percent, then the real rate of interest is: The unemployment rate is the percent of t..
Cause movement along the demand curve for cereal : Complete the following table by indicating whether an event will cause a movement along the demand curve for cereal or a shift of the demand curve for cereal, holding all else constant. A decrease in the price of cereal (Movement Along or Shift?)
Modified to sell them as fixed-gear bikes : Joey, David, Tracy, and Surly own one track bicycle apiece, and they\'ve each modified to sell them as fixed-gear bikes or \"fixies.\" Joey is willing to sell his bike at $100 or more. Maintain the orientation of each bar when creating the graph (i.e..

Reviews

Write a Review

 

Business Economics Questions & Answers

  The law of comparative advantage recommends that countries

The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.

  What is the amount of interest in the first payment

How long will it take, in months, to pay off the balance, if the cardholder continues to make payments of $110.25 per month and adds no other charges to the card?

  Q1 as the ending of month approaches you realize that you

q1. as the ending of month approaches you realize that you perhaps will not be able to pay the next months rent.

  After the tax-how much will the monopoly price change

A profit-maximizing monopolist named Billy faces an inverse demand function described by the equation p(y) = 40 - y and his total costs are c(y) = 7y, where prices and costs are measured in dollars. In the past Billy was not taxed, but now he must pa..

  Monopoly firm faces demand curve

A monopoly firm faces a demand curve given by the following equation: P = $500 − 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. How much will the firm produce? Can yo..

  Q1 if a monopolist has an own-price demand elasticity of -8

q1. if a monopolist has an own-price demand elasticity of -.8 is it maximizing profits? explainq2. what are some

  An increase in the amount of monthly dues would cause

An increase in the amount of monthly dues would cause:

  What must the cfo have expected

What must the CFO have expected about the value of the British pound in $ today to believe that investment in British CD's was more profitable than investment in US CD's last July?

  Elucidate the evidence that supports these recommendations

Elucidate the evidence that supports these recommendations and how your recommendations might need to be modified for the alternative economic futures

  Determine apples optimal output

Consider the market for music downloads. The market demand curve is given by P=10-(1/6)Q. Where Q is the number of downloads sold per hour and P is the price per download. Apple is the dominant firm in this market with constant marginal costs MC=6.

  Firms act independently as in the cournot model

Assume that the firms act independently as in the Cournot model i.e., each firm assumes that the other firm's output will not change.

  Borrowers and lenders make transactions based on the

From the beginning of the 1990s to the year 2000, investment spending as a share of U.S. GDP has tended to: If the nominal interest rate is 6 percent and the inflation rate is 4 percent, then the real rate of interest is: Borrowers and lenders make t..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd