According to the text a bank reaching approximately $100 million in total assets will usually find that its production costs stop declining and level out.

Question

Quizplus · Accepted Answer

Economies of scale in banking suggest that as a bank grows, its production costs per unit typically decrease up to a certain point. However, the specific asset threshold at which costs level out can vary significantly among banks and does not universally occur at approximately $100 million in total assets. The point at which economies of scale plateau is influenced by numerous factors, including the bank's business model, operational efficiency, and technological investments.

According to the Text a Bank Reaching Approximately $100 Million