Multiple Choice
Which of the following is a potential cost of diversification?
A) Firms become bureaucratic and more expensive to manage as they grow.
B) The cost of production increases,thereby reducing profits earned by a firm.
C) The supply of labor reduces,thereby reducing the level of production.
D) Shareholders find it expensive and risky to hold a diversified portfolio.
Correct Answer:

Verified
Correct Answer:
Verified
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