Assume that a local bank sells two services – checking accounts and ATM card services. Mr. Done That is willing to pay $8 a month for the bank to service his checking account, and $10 a month for unlimited use of his ATM card. Ms. Been There wants to pay only $5 for a checking account, but will pay $15 for unlimited use of her ATM card. To keep this example simple, assume that the bank can provide each of this services at zero marginal cost
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Once we have made these assumptions, what is the question?
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