Economies of scope are present when a bank also sells insurance and provides brokerage services for stocks and bonds.

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Economies of scope refer to the cost advantages a company experiences when it produces multiple types of products or services. In the case of a bank offering insurance and brokerage services, there may be cross-selling opportunities and shared resources (such as employees and technology) that can lead to cost savings and increased efficiency.

Economies of Scope Are Present When a Bank Also Sells