1. Production and Cost CHAPTER 12

2. The average total cost curve for transactions with a human teller is ATC T. The ATM and the Cost of Getting Cash The average total cost curve for transactions with an ATM is ATC A. The lowest average total cost for a human teller transaction is $1.07. The lowest average total cost curve for an ATM transaction is 27 cents.

3. The long-run average cost curve is LRAC. At Q transactions per month, both methods have the same average total cost. For a credit union that does fewer than Q transactions per month, its least-cost method is the teller. For a bank that does more than Q transactions per month, the least-cost method is the ATM. The ATM and the Cost of Getting Cash

4. More technology and more capital is not always efficient. The ATM and the Cost of Getting Cash