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1. A writer for the Wall Street Journal discussing the relatively poor performance of HSBC, a global bank with headquarters in the United Kingdom, noted
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A writer for the Wall Street Journal discussing the relatively poor performance of HSBC, a global bank with headquarters in the United Kingdom, noted that: "[The poor performance] is further reason to ask whether the structure of such a large, global bank is working against it... There remains a legitimate question whether the group is too big to manage." Reading this article, a student remarks: "It seems that firm is suffering from diminishing returns." Source: Paul J. Davies, "HSBC Shows the Diminished Value of Global Banks," Wall Street Journal, February 23, 2015. Briefly explain whether you agree with this remark. O A. Agree, because the article is describing the long run. O B. Agree, because the minimum efficient scale for banks is smaller. O C. Disagree, because the size of the bank is fixed in the long run. O D. Disagree, because the article is describing diseconomies of scale.A company that provides home-care for the elderly is able to provide monthly services for 5 patients at a total cost of $5,000 and monthly services for 6 patients at a cost of $5,750. What is the marginal cost of providing monthly services for a 6th patient? The marginal cost is $ . (Enter numeric responses using an integer.)Mr. Jernigan owns a piece of land on which he grows corn. Corn production annually requires $8000 in seed. $3,000 in fertilizer. and $8000 in pesticides. Mr. Jernigan uses his own labor to grow the com and therefore hires no workers. If Mr. Jernigan did not use his time to grow corn. he would instead be able to sell insurance. earning 335.000 per year. Suppose another farmer has just offered to pay Mr. Jernigan rent of 3520.000 per year or use ofthe land. If Mr. Jemigan refuses to rent the land to another farmer. then what will be his accounting costs from farming corn himselfon his land? What will be his economic costs? Mr. Jernigan's accounting costs will be SD per year. and his economic costs will be $ per year. (Enter numeric responses using Integers.) Suppose that Bill owns an automobile collision repair shop. The table below shows the quantity of cars Bill can repair per month depends on the number of workers that he hires. Assume he pays each worker 85,000 per month and his xed cost equals 558.0% per month. Using the information provided. complete the table given below. {Round your responses of average total cost to the nearest sent and ail other responses to the nearest dollar. J Quantity of Quantity of Cars Average Total Workers per Month Fixed Cost l|nl'ariatlle Cost Total Cost Cost 0 0 $3 , 00 [J $_ $_ l 2'\" $ $ $ $ 2 30 $ $ $ $ 3 40 $_ $_ $_ $_ 4 50 5 $_ 5 $ 5 55 $ $ $ $Step by Step Solution
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