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

question 136

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.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:

Job Rotation

A method where employees rotate between different jobs to learn new skills and gain exposure to various areas of an organization.

Job Enrichment

The process of enhancing a job's appeal by adding tasks that increase its scope, complexity, and responsibility to improve employee satisfaction and performance.

Therblig

A set of fundamental motions used in the analysis of the physical movements of workers in manual operations to improve efficiency.