Which of the following about economies of scale is/are TRUE? One or more than one options may be correct. Answers including the wrong options will be marked as wrong.) a. A profitability decrease in trading and other transaction services results from increased efficiency when Fls perform these services. b. Economies of scale helps Fls solve the information asymmetry problem in direct finance. c. A cost reduction in trading and other transaction services results from increased efficiency when Fls perform these services. d. None of the options are true. e. A cost reduction in trading and other transaction services results from stable efficiency when Fls perform these services.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter2: Fundamental Economic Concepts
Section: Chapter Questions
Problem 4E
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Which of the following about economies of scale is/are TRUE? One or more than one options may be correct. Answers including the wrong options will be marked as wrong.)

a. A profitability decrease in trading and other transaction services results from increased efficiency when Fls perform these services.

b. Economies of scale helps Fls solve the information asymmetry problem in direct finance.

c. A cost reduction in trading and other transaction services results from increased efficiency when Fls perform these services.

d. None of the options are true.

e. A cost reduction in trading and other transaction services results from stable efficiency when Fls perform these services.

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