Because firms can free ride on the research and development of other firms
A) firms choose a level of research and development where the marginal cost of research is above the economy's marginal return of research.
B) firms choose a level of research and development where the marginal cost of research is equal to the economy's marginal return of research.
C) firms choose a level of research and development where the marginal cost of research is below the economy's marginal return of research.
D) firms choose a level of research and development where the marginal cost of research is below the individual firm's marginal return of research.
C
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The largest component of spending in GDP is
A) government spending. B) net export spending. C) investment spending. D) consumption spending.
In the simple accelerator theory an
A) increase in actual sales will always lead to an increase in investment. B) increase in actual output will not lead to an increase in expected sales. C) increase in actual sales will lead to an increase in replacement investment. D) increase in the size of the increase in actual sales will lead to an increase in next period's net investment.
Since World War II, about ______ out of every ten family farms have disappeared.
A. one B. three C. five D. seven
In a monopoly, the market demand curve is
A. nonexistent. B. the same as the demand curve facing the firm. C. the summation of all the individual firm's cost curves. D. the marginal cost curve above minimum average variable cost.