The conjecture that R&D expenditures as a percentage of firms' sales first rise, reach a peak, and then fall as industry concentration rises is known as the:
A. inverted-U theory of R&D.
B. average product of R&D theory.
C. bell-shaped-curve theory of product innovation.
D. theory of increasing and diminishing returns.
Answer: A
You might also like to view...
In economics, a free rider is someone who relies on others to pay his bills
Indicate whether the statement is true or false
If a 20% increase in price for a good results in a 15% decrease in quantity demanded, the price elasticity of demand is
a. 0.75. b. 1.25. c. 1.33. d. 1.60.
Policies which promote improvements in health for a society are central to:
A. government deficit spending. B. rising health care costs. C. economic development. D. government monetary policy.
If the price a firm charges in a perfectly competitive industry is greater than average total cost:
A. the firm is earning an economic profit equal to zero. B. the firm is earning an economic profit greater than zero. C. the firm is earning an economic profit less than zero. D. it is not possible to determine anything about profits.