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Fifth Third Bank in Bloomington, Indiana wants to determine the ATM fee that will maximize its profit from ATM operation. The bank management experimented

 

Fifth Third Bank in Bloomington, Indiana wants to determine the ATM fee that will maximize its profit from ATM operation. The bank management experimented with a number of fees (in 0.25 increments) at selected ATM machines. The marginal cost of an ATM transaction is $0.50. The table below provides information on ATM fees and the corresponding usage of ATM ATM Fee ATM Usage 2.25 2.00 1.75 1.50 1.25 1.00 0 1,000 1,500 2,000 2,500 3,000 Calculate the marginal revenue if the ATM fee is $1.00.

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