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

question 166

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 unlimited use of an ATM card?

• A)$14
• B)$11
• C)$9
• D)$2

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Definitions:

Media Power

The significant influence that various forms of media have on public opinion, politics, and societal norms, often shaping cultural and political landscapes.

Mass Media

The various means of communication that reach large numbers of people, such as newspapers, television, and the Internet.

Muckrakers

Journalists and authors, especially during the Progressive Era, who exposed and published stories on corruption, social injustices, and abuses in society.

Watchdogs

Entities or individuals that monitor and report on the activities of organizations or governments to ensure accountability.