Economies of scale associated with financial intermediaries means:
A. the cost per transaction falls as a larger volume of similar transactions are handled.
B. the cost per transaction decreases regardless of the number of transactions.
C. the cost per transaction increases as more transactions are handled.
D. the total cost of handling transactions falls as more transactions of different kinds are handled.
Answer: A
You might also like to view...
The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. What amount of tax per ton of paper is necessary to produce the efficient quantity of paper?
A) $60 B) zero C) $40 D) $100
If the money stock is $900 million and the reserve requirement is 20%, what is the monetary base?
A) $180 million B) $4,500 million C) $720 million D) The monetary base cannot be determined with the information given.
Microeconomics deals with the analysis of all of the following issues except
a. wage determination of carpenters b. unemployment during the Great Depression c. how Ford prices its cars d. the decision a college student makes concerning his or her consumption e. how monopoly and competitive markets differ
Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the marginal cost of producing the third unit of output is A) $30. B) $40. C) $50. D) indeterminate from this information.