We have been working very hard since 2009 to facilitate in your learning Read More. We can't keep up without your support. Donate Now.

www.bit.ly/vucodes

+ Link For Assignments, GDBs & Online Quizzes Solution

www.bit.ly/papersvu

+ Link For Past Papers, Solved MCQs, Short Notes & More

Eco 401 idea solution

Requirement: Being a student of economics, analyze the above case of ADBP carefully. Identify which concept of economics is applied in this case. Explain that concept and justify the reason of applying that concept.
After analyzing the above case of ADBP carefully, it is said the economies of scale and economies of scope concepts are being applied in this case, because when branches quantity increases in size for both loan and deposit accounts and expand its operations at declining average cost then ADBP enjoys economies of scope .

 Further as marginal costs of servicing both loan and deposit accounts decline dye to bank branches quantity increase which reduce operation cost ,leads towards greater cost efficiency for serving loan and deposit accounts, and enjoys economies of scale


In this case, Economics of scale and economics of scope concepts are applied. as per my knowledge, While bank branches in all size categories enjoy economies of scale, the extent of such economies is larger for branches operating at a smaller scale of production.

 When branches quantity increases in size for both loan and deposit accounts and expand its operations at declining average cost then ADBP enjoys economies of scope.

as per economies of scale which gives rise to cost savings through the joint production of loan and deposit accounts.

Further as marginal costs of servicing both loan and deposit accounts decline dye to bank branches quantity increase which reduce operation cost, leads towards greater cost efficiency for serving loan and deposit accounts, and enjoys economies of scale.


+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

+ Click Here to Search (Looking For something at vustudents.ning.com?)

+ Click Here To Join (Our facebook study Group)


Views: 611

Replies to This Discussion

Kya is idea solution ko apni wording may likh liya jae to No mile jae ge kya?

RSS

Looking For Something? Search Here

Latest Activity

Mani Siddiqui BS VIII posted discussions
14 minutes ago
Mani Siddiqui BS VIII replied to Mani Siddiqui BS VIII's discussion مّخمصّہ
46 minutes ago
Bakhtawar khan replied to Mani Siddiqui BS VIII's discussion مّخمصّہ
49 minutes ago
Mani Siddiqui BS VIII posted a status
"کسی کی معصوم ہنسی کے پیچھے درد کو محسوس تو کرو سنا ہے ہنس ہنس کے لوگ خود کو سزا دیتے ہیں"
1 hour ago
jimmy zack updated their profile
1 hour ago
ARhum replied to ARhum's discussion Tu Bewafa Kahan TaK Hai,,,///
1 hour ago
ARhum replied to ARhum's discussion Poetry...!!!
1 hour ago
ARhum liked ARhum's discussion Pyaray Baba.....!!!!***
1 hour ago

HELP SUPPORT

This is a member-supported website. Your contribution is greatly appreciated!

© 2020   Created by +M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service

.