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

question 29

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%, Bank B has assets of $20 million and average costs of 13% while Bank C has assets of $30 million with average costs of 12%.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

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Definitions:

DSM-5

The Fifth Edition of the Diagnostic and Statistical Manual of Mental Disorders, an extensive categorization of formally acknowledged psychiatric conditions, released by the American Psychiatric Association.

Borderline Personality Disorder

A mental illness marked by an ongoing pattern of varying moods, self-image, and behavior, leading to impulsive actions and unstable relationships.

Levels Of Personality

The various layers or aspects of personality that can include traits, motivations, and unconscious processes.

Functional Impairment

A decrease in the ability to perform daily activities as a result of psychological, physical, or cognitive disorders.