Homework Answers
1) :-If the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account
=$3
2) :-. If the bank is unable to use tying, what is the profit-maximizing price to charge for unlimited use of an ATM card
=$10
3) :-. If the bank is able to use tying to price checking account and ATM service, what is the profit-maximizing price to charge for the "tied" good?
=$8+$5
=$13
4) :- how much additional profit does the bank make when it switches to the use of a tying strategy to price checking account and ATM service?
$13-$10
=$3
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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 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...
IL Assume that a local bank sells two services, checking accounts and ATM card services. Mr....
IL Assume that a local bank sells two services, checking accounts 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...
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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...
IL Assume that a local bank sells two services, checking accounts 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....
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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...
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