Can we use Marginal Cost (MC), Average Cost (AC) and Marginal Revenue (MR) in the banking system?

Question

Can these three elements determine the MES (minimum efficient scale) for the bank in the long-run? And will the MR and MC intercept? Does the staff cost included in the MC?

Answer 1

MES=Min LRAC

Banks turn to be bigger and bigger so there´s a profit to get larger. The market is shared by fewer and bigger banks. That means that MES is really high in the long run.

I think MC and AC and MR aren´t enough to determine a  minimized LRAC.

MR will be equal to MC if the bank controls the whole market.

MC=dTC/dQ and  TC includes fixed and variable costs.