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:

Hereditary Nobility

A social class in various countries historically conferred by a monarch or an existing regime, typically involving titles and privileges being passed down through bloodlines.

Ottoman Empire

A vast empire founded at the end of the 13th century in present-day Turkey that expanded to control much of Southeast Europe, Western Asia, and North Africa for over six centuries.

Diplomatic Revolution

Refers to the significant shift in alliances among major European powers in the mid-18th century, particularly between 1756 and 1757, leading to the realignment of diplomatic relations.

1756

The year 1756 is notably remembered for the start of the Seven Years' War, a global conflict that involved most of the great powers at the time.