As it relates to R&D, the expected-rate-of-return curve, r:
A. usually slopes upward.
B. shows the cost of financing various levels of R&D.
C. varies in location depending on the location of the interest-rate cost-of-funds curve, i.
D. represents the marginal benefit element in the MB = MC decision framework.
Answer: D
You might also like to view...
Very few players are drafted into the NFL when they play at Division II or Division III schools whereas more players are drafted in the MLB from these schools. What can explain this?
A) Attending a Division II or Division III school sends a stronger signal of future and present quality in the NFL. B) Attending a Division II or Division III school sends a weaker signal of future and present quality in the MLB. C) A signal of future and present quality is more important in the MLB than in the NFL. D) Attending a particular school is like a screening test for life insurance.
Whom among the following was a classical economist?
A) Adam Smith B) A. C. Pigou C) David Ricardo D) all of the above
Appendix: Revenue equivalence theorem refers to equal seller revenue in which of the following pairs:
a. sealed bid auctions and English auctions b. second highest wins and pays auctions and Dutch auctions c. English highest wins and pays auctions and sealed bid Dutch auctions d. highest wins and pays auctions and second highest wins and pay auctions
Some politicians rally against using the market to reduce pollution because
A. pollution charges and tradable permits allow firms to pollute as long as they can pay for it. B. polluting firms do not care about the environment, so something must be done. C. government-run industries have been better at controlling their pollution costs when compared to privately run firms D. pollution charges and tradable permits do not penalize polluting firms.