If a Bank is characterized by economies of scale,this means that the average cost,per unit,of providing its services
A) increases as the quantity of services provided increases
B) decreases as the quantity of services provided increases
C) increases as the number of banks decrease
D) decreases as the number of banks increase
E) is unrelated to bank size or number

Question

Quizplus · Accepted Answer

Economies of scale means that the average cost per unit decreases as the quantity of services provided increases. Therefore, as a bank experiences economies of scale, the average cost of providing its services decreases as it provides more services.

If a Bank Is Characterized by Economies of Scale,this Means