Which of the Following Is Consistent with Economies of Scope

question 108

Multiple Choice

Which of the following is consistent with economies of scope? The subscript "b" refers to a banking firm,"s" for a securities firm,"AC" is average costs and "TC" is total costs.

• A)AC_{b + s} > AC_b + AC_s.
• B)AC_{b + s} = AC_b + AC_s.
• C)AC_{b + s} < AC_b + AC_s.
• D)TC_{b + s} < TC_b + TC_s.

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Definitions:

Horney

Karen Horney was a German-American psychoanalyst known for her theory of neurotic needs and the concept of womb envy, countering Sigmund Freud's emphasis on penis envy.

Neurotic Trends

Patterns of thought, behavior, or emotion that are dysfunctional or maladaptive, often related to anxiety or stress.

College Students

Individuals enrolled in institutions of higher learning, engaging in studies towards degrees or qualifications.

Horney

Refers to Karen Horney, a psychoanalytic psychologist known for her theory of neurotic needs and her disagreement with Freud's theories on women.