What are the various ways that financial intermediaries can take advantage of economies of scale?
What will be an ideal response?
Standardized legal contracts enable the cost of writing contracts to be spread over many loans. Bank loan officers are able to process loans efficiently by specializing in evaluating and processing loans. Fees for high-dollar purchases of financial assets do not differ much from fess for low-dollar purchases. Financial intermediaries can use sophisticated computers to provide financial services.
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In the above figure, the efficient quantity of magazines to produce per day is
A) 0, because that is where the marginal social benefit exceeds the marginal social cost by as much as possible. B) more than 0 and less than 300,000 magazines. C) 300,000 magazines. D) more than 300,000 magazines.
Intermediate goods are not included in GDP because:
A. certain goods that are used in the production of a final good would be counted twice. B. the value of goods bought by producers to make something else would be counted twice. C. the value of goods used by firms to make the goods they sell is included in the firm's product; accounting for the value twice would overestimate GDP. D. All of these statements are true
An increase in the price level, other things remaining the same, may be expected to result in ____ the consumption function.
A. a downward shift of B. a movement along C. an upward shift in D. no effect on
A company office can be thought of as
A. a trade-off with land. B. a land and labor combination. C. a type of entrepreneurship. D. physical capital.