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

question 32

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.
-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.
• E)there is not enough information to determine economies of scale or scopE.

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Definitions:

Age-Specific Mortality Rate

The death rate within a specific age group in a population during a certain time period.

Disease X

A placeholder name given by the World Health Organization to represent a hypothetical, unknown pathogen that could cause a future epidemic.

Younger Than 65

A demographic criterion often used in research and healthcare to define a population segment that does not fall into the senior age group, typically below the age of 65.

Crude Death Rate

A measurement of the number of deaths per 1,000 individuals per year in a given population, reflecting overall mortality.