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Which of the Following Is Consistent with Economies of Scope

Question 108

Multiple Choice

Which of the following is consistent with economies of scope? The subscript "b" refers to a banking firm,"s" for a securities firm,"AC" is average costs and "TC" is total costs.


A) ACb + s > ACb + ACs.
B) ACb + s = ACb + ACs.
C) ACb + s < ACb + ACs.
D) TCb + s < TCb + TCs.

Correct Answer:

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