Why is it that for-profi t companies rely on sources, such as the federal government for economic incentives and subsidies, rather than paying for their own R&D projects?
What will be an ideal response?
When a for-profit company considers an R&D venture, it typically asks this question: “Will the proposed project increase or decrease the company’s profits?” If the response indicates a high risk is involved, the project typically doesn’t go forward. But the economic incentives offered by the government have been shown to help drive progress by ensuring that R&D takes place. The incentive lowers the perceived risk sufficiently, and the project goes forward.
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A. Analog B. Digital C. Diffused D. Directed
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