What would be the nonpecuniary cost of legislation

Assignment Help Business Economics
Reference no: EM131236801

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 $14 million in withdrawals from other banks’ ATM machines. On average, noncustomers earn a wage of $24 per hour and pay ATM fees of $3.25 per transaction. It is estimated that banks would be willing to maintain services for 6 million transactions at $1.00 per transaction, while noncustomers would attempt to conduct 22 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 $1.00 cap on the fees banks can charge for noncustomer transactions?

Instructions: Round your answer to the nearest penny (2 decimal places).

What would be the full economic price of this legislation?

Reference no: EM131236801

Questions Cloud

The social cost of carbon and economic profits : The social cost of carbon is: Economic profits are:
Cross-price elasticity of demand between goods : 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 $14 million in withdrawals from other banks’ ATM machines. Suppose the cross-p..
When fed decreases the interest rate paid on reserves : When the Fed decreases the interest rate paid on reserves, if the ratio of currency to deposits decreases also while the monetary base is constant, then:
Basis for examining managerial decision-making : In the wake of corporate scandals at Enron, Tyco, and WorldCom, some argue that managers of large, publicly owned firms sometimes make decisions to maximize their own welfare as opposed to that of stockholders. Does such behavior create problems in u..
What would be the nonpecuniary cost of legislation : 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 $14 million in withdrawals from other banks’ ATM machines. What would be the f..
Comparing access of women to important diagnostic services : When looking at data for 1986 to more recent data comparing access of women to important diagnostic services related to medical disorder peculiar to women, we find that access has remained flat.
Determine in which direction the affected curves shifts : Use the AS/AD framework to depict an economy that is a) in equilibrium, and b) operating at full employment. determine in which direction the affected curve(s) shifts. draw in the shifted curve(s)—and label it (them) explicitly. Is the new Unemployme..
Based on the regression equation : Based on the regression equation, the price of gold increased on average by approximately $___ per ounce for a $500 billion increase in the monetary base (round to the nearest dollar). regression equation $/oz gold=207+.05 monetary base
Attempted to create set of social accounts : Many economists have attempted to create a set of social accounts that would come closer to measuring the economic well-being of the society than does GDP. What modifications of the current approach would you recommend to them?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Find firm that you believe has achieved economies of scale

Find a firm that you believe has achieved economies of scale in recent years. Given the determinants of economies of scale (labor specialization, managerial specialization, efficient capital, etc.), which determinant do you believe is most responsibl..

  Most powerful people in the world might be measured

most powerful people in the world might be measured more powerful than most countries leaders

  Pete''s report says that the demand curve will be

Pete's report says that the demand curve will be then OmiCon will build a shopping center that optimally sized for that demand curve. But in the second scenario, if Pete's report says the demand curve will be there is a 20% chance that demand curve w..

  What was the constant dollar percent increase in gdp

In 1988 the US gross domestic product (GDP) increased to $4.90 trillion at year end, from the 1987 year end level of 4.54 trillion in actual escalated dollar values. In the same year, the consumer price index rose approximately 4%. What was the const..

  Represented by the expected value of payoff function

There are three possible outcomes; in the outcome ai a decision-maker gains $ai, where a1

  What is the process by which recessionary gap closes itself

What is the process by which a recessionary gap closes itself? Explain. Why might this self-correcting mechanism work slowly in the face of a recessionary gap?

  Values are ideal consisting of ideas

Values are "ideal" consisting of ideas that we believe to be good and what we should do. What happens when people violate values, failing to practice what they believe in?

  Estimate increased level equilibrium aggregate output

Using the value of MPC = 0.8, and knowing the difference between the values of expenditure multiplier and the tax multiplier, it can be safely stated that the reduction of taxes by $400 billion (other things staying the same), Estimate increased leve..

  What is the opportunity cost of adding an additional

As per to the production possibilities curve above, what is the opportunity cost of adding an additional 100 jars of guava jelly in an economy that is already producing 200 jars of guava jelly.

  List out three policy rules that the fed might follow

List out three policy rules that the Fed might follow. Which of these would you advocate? Why?

  What is the advantage of charging a fee in queuing

What is the advantage of charging a fee in queuing?

  Q1 suppose that the first week of summer jenny charged 25

q1. suppose that the first week of summer jenny charged 25 cents for an 8-ounce cup of lemonade her next-door neighbor

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