Considering the Incentives for the Private Market to Conduct Research

Multiple Choice

Considering the incentives for the private market to conduct research and development, we expect that the amount of research and development conducted by the private sector would be _____ the efficient level because of the _____ property of new knowledge.

A) equal to; rivalrous
B) less than; nonrivalrous
C) more than; rivalrous
D) more than; nonrivalrous