Which of the following statements is false?
A)The long-run implication of economies of scale on the FI sector is that the larger and most cost-efficient FIs will drive out smaller FIs.
B)A potential long-run implication of economies of scale on the FI sector is an increase in large-firm dominance.
C)A potential long-run implication of economies of scale on the FI sector is a concentration in financial services production.
D)A potential long-run implication of economies of scale on the FI sector is a decrease in large-firm dominance.

Question

Quizplus · Accepted Answer

The statement that large-firm dominance may decrease as a result of economies of scale is false. Economies of scale typically lead to larger firms becoming more dominant in an industry. Therefore, statements A, B, and C are true.

Which of the Following Statements Is False