Response to the following problem:
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?
PLEASE SHOW CALCULATIONS ON HOW YOU ARRIVED AT YOUR ANSWER.