Which Three of the Following Are Economies of Scale Available

question 50

Multiple Choice

Which three of the following are economies of scale available to intermediaries but not small investors?

• A) Ability to spread risk.
• B) Reduced transaction costs.
• C) Ability to benefit from low liquidity.
• D) Efficiency in gathering information.

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Definitions:

McGregor

Refers typically to theories X and Y developed by Douglas McGregor, emphasizing two different management styles where theory X is more authoritative, and theory Y is more participative.