16-21 According to economic theory involving economies of scale,larger and more cost-efficient Is should prevail over smaller,less cost-efficient FIs.

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According to the theory of economies of scale, larger financial institutions tend to have lower average costs and can therefore offer services at a lower price, making them more cost-efficient than smaller FIs. As a result, larger FIs are more likely to prevail over smaller FIs in the long run.

16-21 According to Economic Theory Involving Economies of Scale,larger and More