Why Has Empirical Evidence on Economies of Scale and Scope

question 29

Multiple Choice

Why has empirical evidence on economies of scale and scope been so contradictory?

• A)Data on bank costs are unavailable.
• B)Efficiency may be related to overall market conditions.
• C)Efficiency may be related to non-quantifiable variables such as managerial ability.
• D)Neither the intermediation nor the production approach conform to reality.
• E)The methodology to detect economies of scale and scope are still very rudimentary.

Comprehend the minimal group effect and its implications for social identity theory.

Appreciate the role of realistic conflict theory in explaining intergroup conflict and competition.

Recognize the discontinuity effect and its impact on group versus individual behavior in conflict situations.

Identify factors that contribute to the formation and persistence of stereotypes and prejudices.

---

Definitions:

Bootstrap Distribution

A resampling method used in statistics to estimate the distribution of a statistic by repeatedly sampling with replacement from the original data.

Resampling Method

A statistical technique involving repeated sampling from a given dataset to assess the variability of a sample statistic.

Bootstrap

A statistical method that resamples a single dataset to create many simulated samples to estimate the distribution of an estimator.

Permutation

An arrangement of all or part of a set of objects, with regard to the order of the arrangement.