The correct option is B Merchants expanded production into towns with the support of guilds.
In the proto-industrial phase, merchants hired peasants and craftspersons to produce goods. This phase was also marked by the disappearence of common fields. This forced the rural folk to look for other sources of income. Proto-industrialisation production helped rural families to supplement their meagre agricultural incomes. Also, merchants could not expand production into towns as guilds were granted monopoly rights by rulers.