Economies of scale in information production are enjoyed by

Question

Quizplus · Accepted Answer

Economies of scale refer to cost advantages that a firm enjoys as it increases the scale of its operations. In the case of information production, larger lenders have access to more resources and can spread the costs of producing information across a larger number of borrowers, resulting in lower costs per borrower. Therefore, the correct choice is D. Small borrowers, on the other hand, do not benefit from economies of scale in information production because they have fewer resources to invest in information gathering, analysis, and dissemination.

Economies of Scale in Information Production Are Enjoyed by