Scenario 16-5 Assume That a Local Bank Sells Two Services, Checking Accounts

question 224

Multiple Choice

Scenario 16-5
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 $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 16-5.How much additional profit can the bank earn by switching to the use of a tying strategy to price checking accounts and ATM service rather than pricing these services separately?

• A)$14
• B)$11
• C)$7
• D)$1

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Definitions:

N3 Sleep

The deepest stage of non-REM sleep, characterized by slow brain waves and considered crucial for memory consolidation and physical recovery.

REM Sleep

A stage of sleep characterized by rapid eye movements, increased brain activity, and vivid dreams. It plays a crucial role in memory consolidation and emotional regulation.

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The act of consuming cannabis, a psychoactive drug from the Cannabis plant, used for medical, therapeutic, or recreational purposes.

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An acute awareness of oneself, often leading to feeling scrutinized by others or overly aware of one's own actions or appearance.