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:

Sensation and Perception

Processes by which we receive, transform, and interpret stimuli from the environment to form a coherent understanding of the world.

Automated Process

A type of cognitive processing that occurs automatically, without conscious thought, often as a result of learning and repetition.

Inner Representation

The mental symbols or images used to represent objects, events, and relationships in the mind, influencing how information is processed and interpreted.

Gate Theory of Pain

A theory suggesting that pain signals passing through the spinal cord can be blocked or moderated by gates in the spinal cord, influenced by other peripheral sensory signals and the brain.