A bank in a medium-sizes midwestern city, Firm X, currently charges $1 per transactionat its ATM's. To determine whether the raise price, the bank managers experienced with a number of higher prices (in 25-cent increments)at selcted ATM's. The marginal cost of an ATM transaction is $0.50.
ATM Fee Usage
$2.00 1,000
$1.75 1,500
$1.50 2,000
$1.25 2,500
$1.00 3,000
What ATM fee should the bank charge?