In the inverted-U theory of R&D, which of the following industry concentration ratios would be most conducive to R&D (as a percentage of firm sales)?
A. 1 percent.
B. 10 percent.
C. 50 percent.
D. 70 percent.
Answer: C
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The government of your state wants Gigantic Software Corp, which is a natural monopoly, to stay in business yet still produce where price equals marginal cost. The government might choose to
a. set a price ceiling 10 percent lower than its previous level b. impose a tax on the company for each dollar of sales c. establish regulations that raise the company's cost of doing business d. provide a subsidy to the company to cover the loss and ensure a normal profit e. replace the company's top management
The Social Security system was founded
A. as the United States began to recover from the Great Depression. B. during the last years of the nineteenth century, as people who had once depended on having a family farm found themselves without a means of support. C. during the Civil War, to pay pensions for veterans. D. in response to concerns that arose during the high inflation of the 1970s.
The deadline for your research paper is tomorrow and you still need a day of work to complete the paper. Unfortunately, you are scheduled to work all day in the cafeteria. You can turn the paper in one day late for a 10 percent penalty or take the day off of work and turn the paper in by the deadline. Losing a day of wages will cost you $90. The marginal cost of turning the paper in on time is:
A. $90 in forgone wages. B. not getting to lounge around all day. C. 10 percent deducted from your final score. D. the 10% deduction in score and $90 in forgone wages.
When the marginal product of labor ________ the average product of labor, then the average product is maximized.
A. is less than B. is greater than C. equals D. The average product of labor is never maximized.