Economics (AS & A Level) · May / June 2021 · Paper 31 · Question 7
9708Growth and survival of firms
Why might a firm adopt a policy of diversification?
- Ato achieve cost economies of scale
- Bto agree common prices with rivals
- Cto ensure greater ability to spread investment risks
- Dto increase productivity of labour
As printed in the paper
Show the answer
Correct answer: C. to ensure greater ability to spread investment risks
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.