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In which of the following is a firm MOST likely to diversify? When firms cannot easily differentiate in their focal market When a single business

In which of the following is a firm MOST likely to diversify?

  1. When firms cannot easily differentiate in their focal market
  2. When a single business firm's market share is around 10%
  3. When firms seek to smooth earnings
  4. When an expansion of capacity increases economies of scale

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