Which of the following statements is true regarding the Internet?
A. The Internet increases the economically optimal size for firms.
B. The Internet increases the transaction costs.
C. The Internet allows for innovative services but at a relatively higher cost.
D. The Internet enables smaller firms in emerging economies to sell into a global market.
E. The Internet increases the economies of scale from vertical integration.
Answer: The Internet enables smaller firms in emerging economies to sell into a global market.