There are over 5,000 banks in the U.S. -- more than 10 times the number per capita than other industrialized countries. A recent study indicates that the long-run average cost curve for an individual bank is basically flat. If Congress took steps to consolidate banking, thereby reducing the number of banks by half, what would you expect to happen in the industry? Why?© BrainMass Inc. brainmass.com October 10, 2019, 12:12 am ad1c9bdddf
I would expect the long-run average cost curve for an individual bank to go lower, ...
This solution discusses the effect of an industry consolidation on a US bank.