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

question 15

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.
• E)$300,000.

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Definitions:

Humanistic-Existential

An approach in psychology emphasizing human capability, freedom, and the search for meaning.

Self-Awareness

The recognition and understanding of one's own character, feelings, motives, and desires.

Well Adjusted

Describing an individual who is psychologically stable, able to cope effectively with life's challenges, and maintains healthy relationships with others.

Clinical-Like Symptoms

Symptoms that resemble those observed in clinical conditions but may occur in the absence of a diagnosable medical disorder.