Why has empirical evidence on economies of scale and scope been so contradictory?
A)Data on bank costs are unavailable.
B)Efficiency may be related to overall market conditions.
C)Efficiency may be related to non-quantifiable variables such as managerial ability.
D)Neither the intermediation nor the production approach conform to reality.

Question

Quizplus · Accepted Answer

Empirical evidence on economies of scale and scope can be contradictory because efficiency is often influenced by non-quantifiable variables like managerial ability, which are difficult to measure and incorporate into studies.

Why Has Empirical Evidence on Economies of Scale and Scope