Bank 1 with 130 million in assets and 20 million in costs


Question: Bank 1, with $130 million in assets and $20 million in costs, acquires Bank 2, which has $50 million in assets and $10 million in costs. After the acquisition, the bank has $180 million in assets and $35 million in costs. Did this acquisition produce economies of scale or economies of scope?

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Microeconomics: Bank 1 with 130 million in assets and 20 million in costs
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