Examples of economies of scale are:
A. the decrease in overall transaction costs that occur as volume increases.
B. the decrease in overall information costs that occurs as more transactions are handled.
C. the reduction in the cost per transaction that occurs as the number of transactions increase.
D. the additional fees financial intermediaries charge on small accounts.
Answer: C
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Jupiter likes moons more than rings and gets marginal utility worth $5 from the last moon, and $2 from the last ring. Saturn prefers rings, getting MU = $3 from the last ring and $1 from moons. Describe a trade that would increase efficiency.
What will be an ideal response?
American households spend more of their incomes on goods than on services
a. True b. False Indicate whether the statement is true or false
It is estimated that in 2007, Mexico had a population of 110 million and Brazil had a population of 190 million. At the same time, Mexico's GDP was $1 trillion while Brazil's was $1.31 trillion. These data show that
A) Brazil had a healthier economy than did Mexico. B) Mexico's GDP per person was lower than was Brazil's GDP per person in 2007. C) Mexico's GDP per person was $9090 in 2007. D) Brazil's GDP per person was $5300 in 2007.
The beta for General Motors (GM) is 0.5, the risk-free rate is 4%, and the market return is 9%. What is GM's risk-adjusted discount rate?
A) 4% B) 4.5% C) 6.5% D) 9%