explain why larger financial institutions are inevitable and

Quiz 5 MBA 555 Summer 2018 1. Financial Institutions are encroaching on each other\'s territory, making them more alike as well as getting bigger and more complex. Explain why larger financial institutions are inevitable and why they have become more complex. (Think about transactions costs and why synergies between different lines of business arise.) Sole 2. Distinguish between downsizing (say closing stores or plants) and outsourcing (purchasing goods or services that used to be done in-house) using economies/diseconomies of scale and economies/diseconomies of scope. in cr not eaoning trasonable AIA form 4ha? Other 3. High schools benefit from economies of scale (size) and economies of scope (offering college prep and vo-tech). Explain why HSs in rural areas with declining populations cannot take advantage of these factors. 4. Using a diagram, compare learning vs economies of scale. 5. Leaning curves Per unit Labor Requirement Total Labor Requirement Cummulative Output 10 20 30 40 50 60 for each 10 units of output 10 1..0 0.8 0.7 0.64 0.6 0.56 0.53 18(10+.8(10

Solution

In case of large financial institutions, transaction costs are relatively lower. In such institutions, these costs keep diminishing implying a efficient path of growth for the economy as a whole.

These institutions link up with various organisations and builts up a huge connecting system. This system ensures complexity to be retained for smooth functioning of the institutions.