There are very little economies of scale (cost savings)in the credit card business.

Question

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The credit card business does have economies of scale in terms of cost savings. As the number of cardholders and transactions increase, fixed costs such as infrastructure and customer service can be spread over a larger base, resulting in lower costs per transaction. Additionally, larger banks or credit card companies may have more bargaining power with merchants, leading to lower interchange fees and costs associated with card processing.

There Are Very Little Economies of Scale (Cost Savings)in the Credit