The fact that a financial intermediary can hire a lawyer to write one contract that works for many customers is an example of:

Question

Quizplus · Accepted Answer

Economies of scale refer to the phenomenon in which the per-unit cost decreases as the level of output increases. In this case, the intermediary is able to spread the cost of hiring a lawyer to write a contract over many customers, resulting in a lower per-customer cost. This is an example of economies of scale. The law of diminishing marginal returns, the law of increasing opportunity cost, and the law of demand are not related to this scenario.

The Fact That a Financial Intermediary Can Hire a Lawyer