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Question
Which of the following is consistent with economies of scope? The subscript "b" refers to a banking firm, "s" for a securities firm, "AC" is average costs and "TC" is total costs.
A. ACb + s > ACb + ACs.
B. ACb + s = ACb + ACs.
C. ACb + s < ACb + ACs.
D. TCb + s < TCb + TCs.
E. TCb + s > TCb + TCs.
Answer
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