What reason do economists believe that megabanks are forming?
A) Megabanks enable economies of scale in information processing which allows them to better serve their customers.
B) Megabanks create economies of scale which allow the banks to make riskier investment and increase profits.
C) Megabanks can compensate for their economies of scale by diversifying into many countries.
D) Megabanks allow investors more opportunities and have continued to grow by using their economies of scale to overwhelm their competition.
A
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What will be an ideal response?
Suppose Brian Adams wants to perform a concert in the City Park in Corner Brook, Newfoundland. The city officials argue that the only way the concert can be given permission to be performed in the City Park is if it is free of charge. If Brian Adams agrees to performing free of charge, then the concert is:
a) rival and nonexcludable b) a private good c) excludable d) nonexcludable