(Solved): Consider the following assessment of economies of scale for 476 actual banks in Teas. Economies wer ...

Consider the following assessment of economies of scale for 476 actual banks in Teas. Economies were assocred for 2015 data where output is assess, and inputs ape boor ari Toxas banks, (Reterenco ECO, section \( 7.5 \) for more delail on LPAC) A. Babed on the graph, are there incleasing returns to scale (iRS) for Texas banks? Explain by dofining IRS and, if ifS exists the tange of baikeze for oconceniet of scale B. Based on the gaph, are there constant iefurn to scale (CRS) Explan by detring CRS and, it CRS waists, the range of bark-size for eccnomies of bcale. C. Baned on the graph, are there decreasing teturn to scale (DRS)? Explain by defining DRS and, if DRS exits, the range of bark fite foc economies of scale. D. Are smail banks (those with less than 10 locatons) at a major cost disadrantago relafive to largo Texas baiks (thoco aith 300 locationt)? If so, what is the scale of the telativo dibadvantage (e \( 9,5: 1 \) ratio means \( \$ 5 \mathrm{AC} \) for smal barks and \( \$ 1 \mathrm{AC} \) for large tarks). Expalin in one sectence [e: