The Following Information Is Available on the Average Costs of the Three

question 63

Multiple Choice

The following information is available on the average costs of the three major banks in a given local market. Bank A has assets of $10 million and average costs are 15 per cent, Bank B has assets of $20 million and average costs of 13 per cent while Bank C has assets of $30 million with average costs of 12 per cent. Average costs are measured as a proportion of total assets. The above figures indicate that:

• A) there are significant economies of scale still present in the local markets.
• B) there are significant diseconomies of scale still present in the local markets.
• C) there are significant economies of scope still present in the local markets.
• D) there are significant diseconomies of scope still present in the local markets.

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Definitions:

CEO

CEO stands for Chief Executive Officer, the highest-ranking person in a company or organization, responsible for making major corporate decisions.

"Whitened" Resumés

The practice of altering aspects of one's resume to hide or downplay attributes that may reveal ethnic or racial background in hopes of reducing bias in the hiring process.

Racial Information

Data or insights related to race, including demographics, cultural background, and issues concerning racial identification and diversity.

Age Discrimination

Unfair treatment of individuals in employment settings because of their age, particularly practices that disadvantage older employees.