Scenario 17-5 Assume That a Local Bank Sells Two Services, Checking Accounts

question 48

Multiple Choice

Scenario 17-5
Assume that a local bank sells two services, checking accounts and ATM card services. The bank's only two customers are Mr. Donethat and Ms. Beenthere. Mr. Donethat is willing to pay $8 a month for the bank to service his checking account and $2 a month for unlimited use of his ATM card. Ms. Beenthere is willing to pay only $5 for a checking account, but is willing to pay $9 for unlimited use of her ATM card. Assume that the bank can provide each of these services at zero marginal cost.
-Refer to Scenario 17-5.If the bank is unable to use tying,what is the profit-maximizing price to charge for a checking account?

• A) $13
• B) $9
• C) $8
• D) $5

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Definitions:

Child Psychology

The study of the mental, emotional, and behavioral development of children from birth through adolescence.

Psychological Contract

An unwritten agreement that outlines the expectations and obligations between employees and employers, beyond the formal contract.

Job Satisfaction

A measure of how content an individual is with their job; it can affect performance, mental health, and company morale.

Organizational Commitment

The psychological attachment and loyalty an individual feels toward their organization, often reflected in their willingness to remain a part of it.