Calculate the atm fee should the bank charge - marginal cost, Cost Accounting

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.

2476_Calculate the ATM Fee Should the Bank Charge - Marginal Cost.png

What ATM fee should the bank charge?

 

 

Posted Date: 3/13/2013 7:21:33 AM | Location : United States







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