If all the students in your class pool their money in order to buy one bond and share its return accordingly, in order to eliminate transaction costs, this is an example of ________.
A) economies of scale
B) cooperative game
C) risk sharing
D) moral hazard

Question

Quizplus · Accepted Answer

Pooling resources to buy a bond and share its returns reduces transaction costs per individual, demonstrating economies of scale.

If All the Students in Your Class Pool Their Money