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

question 54

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 percent,Bank B has assets of $20 million and average costs of 13 percent while Bank C has assets of $30 million with average costs of 12 percent.Average costs are measured as a proportion of total assets.

By how much should operating costs of the combined entity (Bank A + Bank B) be reduced in order to stay competitive in the local market,ceteris paribus?

• A)$900,000.
• B)$600,000.
• C)$500,000.
• D)$400,000.

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Definitions:

Fertility Treatment

Medical strategies and interventions aimed at helping individuals or couples conceive a child.

Sexual Relationship

A relationship between individuals that involves emotional or physical intimacy, typically including sexual activity.

Nondiscriminatory Attitude

An approach or mindset that actively avoids bias, prejudice, and unfair treatment of others based on their characteristics or background.

Effective Communication

The process of exchanging information in a way that the message is received and understood as intended by the sender.