Economies of scale is the concept that:

Question

Quizplus · Accepted Answer

Economies of scale is the concept that as the scale of production or operation increases, the cost per unit decreases due to increased efficiency. In the context of financial institutions, economies of scale can be achieved in trading and other transaction services, resulting in cost reduction. This is because FIs can spread fixed costs, such as technology and infrastructure, across a larger volume of transactions, leading to lower average costs per transaction.

Economies of Scale Is the Concept That