Pricing ATM Machines
A bank in a medium-sized Midwestern city, Firm X, currently charges $1 per transaction at its ATM's. To determine whether to raise price , the bank managers experimented with a number of higher prices (in 25-cent increments) at selected ATM's. The Marginal cost of an ATM transaction is $0.50.
ATM Fee Usage
What ATM fee should the bank charge?