What is the main risk management benefit of product diversification in handicrafts?

Correct answer: If demand for one product falls, income can come from another product

Direct answer: Option A. Product diversification means making or selling different kinds of products instead of depending on only one. This is useful risk management. Reasoning step by step: suppose demand for baskets falls because fashion changes; if the artisan also sells mats, toys or decorative items, another product may still earn money. Thus one weak product does not destroy the whole income. Option A is correct because it explains income protection through alternative products. Option B is wrong: producing many products does not make every cost zero; materials, labour, transport and marketing still cost money. Option C is wrong: each product still requires appropriate knowledge and skill. Option D is wrong: diversification is used to serve markets, not to close them permanently. Remember that diversification reduces dependence on one product, but it does not guarantee profit or remove every business risk.