Homework Answers
a) The profit maximizing price would be $8 for checking account because in that case Mr. Donethat will buy the service and Bank earns $8 while if it kept price lower to $3 to capture Mr. Beenthere, the bank profit will be $ (3+3) =$6 which will be lower than $8.
b) The profit maximizing Price for ATM service would be either $5 or $10 because in either case the total profit for Bank would be highest i.e. $10.
c) The profit maximizing Price for the tied product will be $13 because sum of willingness to pay for both product for both customer is $13 and firms profit would be $(2*13) = $26
d) Additional profit that Bank makes through tying is $ (26-18) = $8.
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IL Assume that a local bank sells two services, checking accounts and ATM card services. Mr....
II. Assume that a local bank sells two services, checking accounts and ATM card services. Mr....
II. Assume that a local bank sells two services, checking accounts and ATM card services. Mr. Doncthat is willing to pay $8 a month for the bank to service his checking account and $5 a month for unlimited use of his ATM card. Ms. Beenthere is willing to pay only $3 for a checking account, but is willing to pay $10 for unlimited use of her ATM card. To keep this example simple, assume that the bank can provide cach...
II. Assume that a local bank sells two services, checking aceounts and ATM card services. Mr....
II. Assume that a local bank sells two services, checking aceounts and ATM card services. Mr. Donethat is willing to pay $8 a month for the bank to service his checking account and $5 a month for unlimited use of his ATM card. Ms. Beenthere is willing to pay only $3 for a checking account, but is willing to pay $10 for unlimited use of her ATM card. To keep this example simple, assume that the bank can provide each...
Answer Point Value Points Earned American Credit Union First National Bank Hillsboro Bank Internet Bank ATM...
Answer Point Value Points Earned American Credit Union First National Bank Hillsboro Bank Internet Bank ATM Charges Home bank Free Free Free Free $1 4 free then $2 per use $3 $500 $200 $5 $6 Use of service at competitor's bank Checking Account Minimum balance required to avoid fees $400 $250 Monthly Maintenance Fee $13 7 free checks, then $1 per Per Check Processing Fees Unlimited check 1. Selecting a Bank. Sean wants to open a checking account with $275....
The First Chicago Bank is reviewing its service charges and interest-paying policies on checking accounts. The...
The First Chicago Bank is reviewing its service charges and interest-paying policies on checking accounts. The daily balance of a checking account is defined to be the balance in the checking account at 2:00pm. The bank has found that for all personal checking accounts the mean of all the daily balances is $750 and the standard deviation is $150. In addition, the distribution of personal checking account daily balances can be approximated very well with a normal model. Question 1....
The First Chicago Bank is reviewing its service charges and interest-paying policies on checking accounts. The...
The First Chicago Bank is reviewing its service charges and interest-paying policies on checking accounts. The daily balance of a checking account is defined to be the balance in the checking account at 2:00pm. The bank has found that for all personal checking accounts the mean of all the daily balances is $ 750 and the standard deviation is $100. In addition, the distribution of personal checking account daily balances can be approximated very well with a normal model. Question...
c++ help please. Savings accounts: Suppose that the bank offers two types of savings accounts: one...
c++ help please. Savings accounts: Suppose that the bank offers two types of savings accounts: one that has no minimum balance and a lower interest rate and another that requires a minimum balance but has a higher interest rate (the benefit here being larger growth in this type of account). Checking accounts: Suppose that the bank offers three types of checking accounts: one with a monthly service charge, limited check writing, no minimum balance, and no interest; another with no...
I need all of the following journal entries done Date Transaction No. Jay opened two accounts...
I need all of the following journal entries done
Date Transaction No. Jay opened two accounts at Union Stale Bank, using S3,000 of his own moncy. He deposited $2,500 in a checking account and $500 into savings 7:1 1 Jay borrowed S6,000 from his Aunt Emma and signed a note with 8% interest. Under the terms of the note, he must make payments of $250 plus acCrued interest on the first day of cach month. Jay put $4,500 into his...
EVALUATING BANKING SERVICES “Wow! My account balance is a little lower than I expected,” commented Melanie...
EVALUATING BANKING SERVICES “Wow! My account balance is a little lower than I expected,” commented Melanie Harper as she reviewed her bank statement. “Wait a minute! There’s nearly $20 in fees for ATM withdrawals and other service charges. Oh no! I also went below the minimum balance required for my free checking account,” Melanie groaned. “That cost me $7.50!” Melanie is not alone in her frustration with fees paid for financial services. While careless money management caused many of these...
C++ Banks offer various types of accounts, such as savings, checking, certificate of deposits, and money...
C++
Banks offer various types of accounts, such as savings,
checking, certificate of deposits, and money market, to attract
customers as well as meet their specific needs. Two of the most
commonly used accounts are savings and checking. Each of these
accounts has various options. For example, you may have a savings
account that requires no minimum balance but has a lower interest
rate. Similarly, you may have a checking account that limits the
number of checks you may write....
Assume that there are two firms competing in the market for taxi services, Company U and...
Assume that there are two firms competing in the market for taxi services, Company U and Company G. Company U has a marginal cost MCUB = $6 per trip, and a fixed cost FCUB = $2,500,000; while Company G has a marginal cost MCGC = $12 per trip, and a fixed cost FCGC = $1,500,000. The inverse demand for taxi trips in the market is given by the function: ?=60−?/10,000 In this equation, P is the price of a taxi...
II. Assume that a local bank sells two services, checking accounts and ATM card services. Mr. Doncthat is willing to pay $8 a month for the bank to service his checking account and $5 a month for unlimited use of his ATM card. Ms. Beenthere is willing to pay only $3 for a checking account, but is willing to pay $10 for unlimited use of her ATM card. To keep this example simple, assume that the bank can provide cach...
II. Assume that a local bank sells two services, checking aceounts and ATM card services. Mr. Donethat is willing to pay $8 a month for the bank to service his checking account and $5 a month for unlimited use of his ATM card. Ms. Beenthere is willing to pay only $3 for a checking account, but is willing to pay $10 for unlimited use of her ATM card. To keep this example simple, assume that the bank can provide each...
Answer Point Value Points Earned American Credit Union First National Bank Hillsboro Bank Internet Bank ATM Charges Home bank Free Free Free Free $1 4 free then $2 per use $3 $500 $200 $5 $6 Use of service at competitor's bank Checking Account Minimum balance required to avoid fees $400 $250 Monthly Maintenance Fee $13 7 free checks, then $1 per Per Check Processing Fees Unlimited check 1. Selecting a Bank. Sean wants to open a checking account with $275....
I need all of the following journal entries done
Date Transaction No. Jay opened two accounts at Union Stale Bank, using S3,000 of his own moncy. He deposited $2,500 in a checking account and $500 into savings 7:1 1 Jay borrowed S6,000 from his Aunt Emma and signed a note with 8% interest. Under the terms of the note, he must make payments of $250 plus acCrued interest on the first day of cach month. Jay put $4,500 into his...
C++
Banks offer various types of accounts, such as savings,
checking, certificate of deposits, and money market, to attract
customers as well as meet their specific needs. Two of the most
commonly used accounts are savings and checking. Each of these
accounts has various options. For example, you may have a savings
account that requires no minimum balance but has a lower interest
rate. Similarly, you may have a checking account that limits the
number of checks you may write....
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