16-85 Why Has Empirical Evidence on Economies of Scale and Scope

question 101

Multiple Choice

16-85 Why has empirical evidence on economies of scale and scope been so contradictory?

• A)Data on bank costs are unavailable.
• B)Efficiency may be related to overall market conditions.
• C)Efficiency may be related to non-quantifiable variables such as managerial ability.
• D)Neither the intermediation nor the production approach conform to reality.
• E)The methodology to detect economies of scale and scope are still very rudimentary.

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