If the bank obtains cost-reducing benefits from the fact that the unit costs of two or more services are lower when produced jointly, as opposed to separately, the bank has benefited from:
A) economies of scale
B) economies of operation
C) economies of scope
D) economies of production
E) none of the above

Question

Quizplus · Accepted Answer

Economies of scope occur when the cost of producing two or more services together is less than producing them separately. This concept applies to the scenario described, where the bank benefits from lower unit costs by jointly producing services.

If the Bank Obtains Cost-Reducing Benefits from the Fact That