Question-

A bank in a medium-sized Midwestern city, Firm X, currently charges $1 per transaction at its ATMs. To determine whether to raise price, the bank managers experimented with a number of higher prices (in 25 cent increments) at selected ATMs:

Fee # of Transactions

$2.00 1000

$1.75 1500

$1.50 2000

$1.25 2500

$1.00 3000

The marginal cost of an ATM transaction is $0.50. What ATM fees should the bank charge?