The Ability of a Firm to Diversify into Other Markets

Multiple Choice

The ability of a firm to diversify into other markets is an example of which type of economy of scale?

A) Risks being spread.
B) Inputs can be obtained at a lower price.
C) The firm can obtain finance at a lower cost.
D) The firm can overcome the problem of indivisibilities.
E) The firm can benefit from the division of labour.