Economies of Scope Imply an FI's Ability to Lower Its

question 72

True/False

Economies of scope imply an FI's ability to lower its average cost by expanding its output of financial services.

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Definitions:

Confection Corporation

A business entity specialized in the production and sale of sweets and chocolates.

Perfect Tender Rule

A common law rule under which a seller was required to deliver to the buyer goods that conformed perfectly to the requirements stipulated in the sales contract. A tender of nonconforming goods would automatically constitute a breach of contract. Under the Uniform Commercial Code, the rule has been greatly modified.

Conform

To act in accordance or harmony with established standards, rules, or laws.

Contract

A contract is a legally enforceable agreement between two or more parties with mutual obligations.