According to Studies, Which of the Following May Better Explain

question 20

Multiple Choice

According to studies, which of the following may better explain cost differences and operating cost efficiencies among FIs?

• A)diseconomies of scale
• B)economies of scale
• C)economies of scope
• D)X-inefficiencies

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Definitions:

Average Total Cost Curve

A graph that represents the total cost of production (fixed and variable costs combined) divided by the quantity of output produced, at various levels of output.

Diffusion

The spread of an innovation through its widespread imitation.

Inventions

Original creations or discoveries that offer new technical solutions or enhance existing ones.