Which of the following is a possible reason for diversification?
A)To promote the supply of complementary products
B)To promote the supply of substitute products
C)To increase social benefits
D)To internalize negative externalities

Question

Quizplus · Accepted Answer

Diversification can occur to promote the supply of complementary products, which are products that are used or consumed together with another product. By diversifying into the production of complementary products, a firm can capture additional market share, increase revenue, and mitigate risks associated with relying on a single product or market.

Which of the Following Is a Possible Reason for Diversification