Because of the Kind of Externalities That Tend to Be

Multiple Choice

Because of the kind of externalities that tend to be generated from general R&D resources bought by firms, the equilibrium price of R&D:

A) is above the optimal level, and quantity is below the optimal level.
B) is below the optimal level, and quantity is above the optimal level.
C) and quantity of R&D are both above the optimal level.
D) and quantity of R&D are both below the optimal level.
E) must fall in order for the market to reach equilibrium.